what does active under contract mean?

TLDR: "Active Under Contract" indicates a property has an accepted offer but is still available for backup offers due to unmet contingencies. This status is crucial for both buyers and sellers, affecting their strategies and decisions in the real estate market.

In real estate, "Active Under Contract" signifies that a property has received an accepted offer, but the sale is not finalized due to certain contingencies, such as home inspections or financing approvals. This status allows sellers to continue marketing the property and accept backup offers, providing them with leverage if the current deal falls through. For buyers, it presents an opportunity to make backup offers, although they should be aware that their offer would only be considered if the primary contract fails to close.

Understanding the distinction between "Active Under Contract" and other terms like "Pending" is essential. While "Pending" means all contingencies have been satisfied and the sale is ready to close, "Active Under Contract" indicates that the sale is still contingent on certain conditions. This knowledge helps both buyers and sellers navigate the real estate market more effectively, influencing their negotiation strategies and decision-making processes.