If you’re buying or selling a home, you’ve likely come across the phrase “under contract.” But what does under contract mean, and how does it affect your ability to move forward in the real estate process?
Whether you’re looking to sell my house fast or make a competitive offer on a new property, understanding this key real estate term is essential. In this guide, you’ll learn everything you need to know about the “under contract” status—what it means, what can go wrong, and how trusted homebuyers in Indianapolis like KK Buys Indy Homes can help simplify the process.
What Does Under Contract Mean in Real Estate?
In real estate, “under contract” means that a buyer and a seller have agreed on terms and signed a legally binding purchase agreement. The home is no longer actively listed for sale, but the deal hasn’t closed yet.
It’s important to understand that being under contract doesn’t guarantee the home will sell. Several steps still need to be completed, such as home inspections, appraisals, and loan approvals.
If you’re a homeowner thinking, “How do I sell my house without delays or falling deals?” you’re not alone. Many sellers in Indianapolis are choosing to work with local cash buyers like KK Buys Indy Homes who can eliminate this waiting period entirely. We buy houses as-is, fast, and without hassle.
What Does It Mean When a House Is Under Contract?
When a property is listed as under contract, it means an offer has been accepted and both parties have signed a contract. However, that contract is often contingent on several key factors:
- The buyer securing financing
- A satisfactory home inspection
- Appraisal matching or exceeding the offer
- A clean title and proper legal documentation
Even though the house is under contract, it’s still possible for the deal to fall through. If you’re trying to sell my house in Indianapolis, relying solely on traditional buyers can lead to delays or disappointment.
That’s why many sellers are turning to companies like KK Buys Indy Homes. We buy houses directly from homeowners without agents, fees, or delays related to financing.
What Does Active Under Contract Mean?
“Active under contract” is a real estate term used when a home is under contract but still accepting backup offers. This often happens when the seller is unsure whether the current deal will close smoothly, especially if the buyer hasn’t cleared all contingencies.
For buyers, this status signals a potential opportunity to jump in if the first offer fails. For sellers, it’s a backup plan in case financing or inspections cause issues.
If you’re a homeowner who doesn’t want to deal with uncertainty or multiple showings, consider selling directly. At KK Buys Indy Homes, we buy houses with cash offers, allowing you to skip the traditional contract process completely.
Why Home Sales Fall Through While Under Contract
A house under contract isn’t guaranteed to close. Here are the most common reasons why deals fall apart:
1. Failed Inspections
Buyers often request repairs or try to renegotiate after a home inspection. If an agreement isn’t reached, they can cancel the contract.
2. Low Appraisals
If the home doesn’t appraise for the offer price, lenders may refuse to finance the full amount, leaving the buyer without the necessary funds.
3. Financing Problems
Even pre-approved buyers can lose mortgage eligibility due to changes in income, credit scores, or job status.
4. Title Issues or Liens
Legal issues such as tax liens, unpaid bills, or disputes over ownership can delay or cancel the sale.
If you’re tired of waiting for a deal to close or afraid it won’t, KK Buys Indy Homes can help. We buy houses in any condition, without inspections or financing delays. If you’re thinking, “I want to sell my house fast,” this is the easiest way to do it.
Under Contract vs. Pending: What’s the Difference?
Both “under contract” and “pending” mean a sale is in progress, but there’s a difference.
- Under Contract: The sale is still contingent on financing, inspections, or other conditions.
- Pending: All contingencies have been met, and the sale is just waiting to close.
If you’re browsing listings and see a property marked as “pending,” it is much closer to being sold than one marked “under contract.”
As a seller, this stage can feel uncertain. If your goal is to sell my house fast without waiting weeks or months, consider skipping the MLS and working directly with a cash buyer. KK Buys Indy Homes offers fast closings and fair offers.
How KK Buys Indy Homes Offers a Faster Alternative
Selling a house the traditional way can take weeks or even months. You have to prepare your property, schedule showings, negotiate offers, pass inspections, and hope financing is approved.
But there’s a better way to sell my house fast in Indianapolis.
Here’s how KK Buys Indy Homes simplifies the process:
- We buy houses as-is, with no need for repairs or cleaning
- You choose your closing date, often in as little as 7 days
- No commissions or agent fees
- No waiting on banks because we pay cash for houses
Whether your home is already under contract and you’re ready to back out, or you haven’t listed it yet, we can help you move forward without the typical delays.
FAQs About What “Under Contract” Means
What does under contract mean in real estate?
It means a seller has accepted a buyer’s offer and signed a contract, but the sale isn’t finalized. It is still subject to contingencies like inspections and financing.
What does it mean when a house is under contract?
It means the seller and buyer are working toward closing the sale, but the deal can still fall through if contingencies aren’t met.
What does active under contract mean?
It means the house is under contract, but the seller is still accepting backup offers in case the current deal fails.
Can I sell my house while it’s under contract?
Legally, you’re bound to the signed contract. However, if the buyer fails to meet agreed conditions, the seller may be able to terminate and accept a new offer.
What’s the easiest way to sell my house without waiting?
The fastest way is to sell directly to a local cash buyer like KK Buys Indy Homes. We buy houses in any condition and can close quickly without any third-party delays.
Final Thoughts: What Under Contract Means to You
Now that you understand what under contract means, you can navigate the home selling or buying process with more confidence. If you’re selling in Indianapolis and want to avoid complications, there is a simpler option.
If you’re thinking, “I want to sell my house without the stress,” you’re not alone. Many homeowners are skipping agents and traditional listings altogether by working with local homebuyers who can move fast.
That’s where KK Buys Indy Homes steps in.
We buy houses in Indianapolis regardless of their condition, and we do it fast, offering fair cash offers that put you in control of your timeline.
Contact KK Buys Indy Homes today to get started.