what does under contract mean on zillow?

TLDR: "Under contract" on Zillow means a buyer's offer has been accepted, but the sale isn't finalized yet. This status indicates that the property is in a transitional phase, where contingencies must be met before closing. Buyers can make backup offers, while sellers should address any issues that arise.

In real estate, "under contract" signifies that a buyer's offer has been accepted by the seller, but the sale is not yet complete. This status indicates a transitional phase where the property is not actively available for new offers, although it remains on the market for backup offers. During this period, both parties negotiate contingencies such as financing, appraisals, and inspections, which must be satisfied for the transaction to proceed to closing.

For buyers, a property under contract means there is still a chance for the deal to fall through if contingencies are not met, making backup offers a viable option. Sellers benefit from this status as it shows progress towards a sale, but they must remain proactive in addressing any arising issues. Understanding the difference between "under contract" and "pending" is also crucial; while "under contract" allows for contingencies and backup offers, "pending" indicates that all contingencies have been met and the property is typically off the market.