When browsing through real estate listings, you may come across the phrase «in contract» next to a house for sale. This term can be confusing for those who are not familiar with real estate jargon, but its meaning is quite simple.

«In contract» means that the seller of the property has accepted an offer from a buyer, and both parties have signed a contract agreeing to the terms of the sale. This contract is legally binding and outlines the specific details of the transaction, such as the purchase price, closing date, and any contingencies or conditions that must be met before the sale can be completed.

Once a property is in contract, it is considered «pending,» meaning that the sale is in progress but has not yet been finalized. During this time, the buyer may conduct inspections and final walkthroughs, and the seller may make any necessary repairs or adjustments to the property.

It`s important to note that just because a property is in contract does not necessarily mean that the sale will be completed. In some cases, the deal may fall through due to issues with financing, inspections, or other factors. However, if everything goes smoothly, the sale will proceed to the closing process, at which point the property will officially change hands.

As a potential buyer, it`s important to be aware of a property`s contract status when considering a purchase. If a property is already in contract, you may be able to submit a backup offer in case the original deal falls through. However, it`s always best to work with a qualified real estate agent who can guide you through the complexities of the home buying process and help you navigate any obstacles that may arise.

Overall, the term «in contract» simply means that a property is in the process of being sold, and the details of the transaction have been agreed upon by both parties. Whether you`re a buyer or a seller, understanding this term can help you navigate the real estate market with confidence and make informed decisions along the way.