You’re scrolling listings, spot your dream home, and then see those two little words: “Under Contract.” Heartbreak.” So what does under contract mean, exactly? Is the house gone forever or is there still hope? In plain English: under contract means the seller has accepted an offer and both parties have signed a purchase agreement, but the transaction is not finished. Contingencies—financing, inspection, appraisal—are still being satisfied, and until they’re removed, the deal can fall apart. Here’s everything buyers and sellers need to know about this critical (and often misunderstood) stage in today’s market.
The Exact Moment a House Goes “Under Contract”
The second the seller signs the final offer (or counteroffer) and it becomes a binding contract and the listing status flips to “under contract” (sometimes called “active under contract” or “contingent”). The house is no longer openly marketed, but it’s not sold yet. In most states, including South Carolina, the buyer has 7–21 days to complete due diligence and remove contingencies. Until that happens, the seller technically can’t accept another offer—unless the contract has a kick-out clause.
What Under Contract Means for Buyers
If you’re the one who got the house under contract, congratulations… sort of. Now the real work begins. You’ll schedule the inspection, order the appraisal, lock your rate, and submit final loan docs. Miss deadlines and you risk losing your earnest money. In 2025’s tighter lending environment, roughly 18 percent of contracts still fail here—usually financing or appraisal issues.
If you’re the buyer who missed out and see “under contract,” don’t delete the listing yet. Submit a strong backup offer. Emily in Myrtle Beach did exactly that on a canal home. The first buyer’s financing collapsed over a low appraisal; Emily’s backup (with an appraisal-gap guarantee) slid in and closed 12 days later.
What Under Contract Means for Sellers
You’ve accepted an offer—pop the champagne, right? Not quite. Roughly one in five contracts falls through before closing. Smart sellers keep the house show-ready, continue marketing quietly, and seriously consider backup offers. Many listing agents now include a “right to continue showing” clause so they can collect backups legally.
Common Reasons Deals Fall Apart While Under Contract
- Financing denial (most common in 2025)
- Low appraisal forcing renegotiation
- Inspection surprises (roof, HVAC, mold)
- Title or lien issues discovered in search
- Buyer cold feet or job loss
Pro Tips to Protect Yourself
Buyers: Get fully underwritten pre-approval, order the appraisal the day escrow opens, and use an escalation clause in multiple-offer situations. Sellers: Require a sizable non-refundable earnest money deposit after inspection, ask for proof of funds or pre-approval with the offer, and always accept backup offers.
Conclusion
Now you know exactly what does under contract mean—it’s the fragile bridge between accepted offer and closed sale. Treat it with respect, move fast on due diligence, and always have a Plan B (backup offers or backup properties). The difference between heartbreak and homeownership often comes down to understanding this single stage.
Want to skip the entire “under contract” drama altogether? Redhead Home Properties buys houses for cash with zero contingencies, zero waiting, and closing in as little as 7 days. Get your fair, no-obligation offer in 24 hours or call 843-385-9115 today—because sometimes the fastest way to your next chapter is selling the current one on your terms.
FAQ: What Does Under Contract Mean FAQ
What does under contract mean when I see it on Zillow or Realtor.com?
Seller has accepted an offer; contingencies are still active. The sale is not final.
Can I still make an offer on a house that says under contract?
Yes—submit a backup offer. Many sellers accept them, especially in 2025’s competitive markets.
How long does a house stay under contract before closing?
Typically 30–45 days from contract to close; cash deals can be 7–21 days.
Is “under contract” the same thing as “pending” or “sale pending”?
Not exactly. Under contract = contingencies still active. Pending = all contingencies removed, just waiting on closing.
Can the seller back out after the house is under contract?
Only if a contingency allows it. Otherwise they risk losing earnest money or being sued for specific performance.
What happens to my earnest money if the deal falls through under contract?
You usually get it back if you cancel within contingency periods (inspection, financing, appraisal).
Should I keep looking at houses after mine goes under contract?
Buyers: yes, have backups. Sellers: keep showing until contingencies are removed.
How often do houses fall out of under contract in 2025?
About 15–20 percent nationally; higher in high-price markets with strict appraisals.
