Active Under Contract

Typically, this phase lasts between 7 and 14 days—long enough for the inspection and appraisal to be ordered and reviewed. Once those major hurdles are cleared, the status usually shifts to “Pending.” If you are preparing to buy, keep an eye on your favorite “under contract” homes; if they don’t change to “Pending” after two weeks, there might be a problem brewing that you can capitalize on.

When a home is in this status, the “Big Three” deal-killers are:

1. Inspection Results: The buyer finds mold, structural issues, or termite damage.

2. Appraisal Gap: The bank values the home for less than the purchase price.

3. Financing: The buyer’s loan is denied at the last minute (often due to a change in credit or job status).

Yes! In fact, sellers often encourage it. An asset-rich individual seeking for real estate investments might put in a “clean” backup offer (all cash, no contingencies) to tempt a seller. If the first buyer asks for expensive repairs after their inspection, the seller might be more likely to play hardball or cancel the deal knowing they have your “clean” offer waiting.

It depends on your local 2026 market. If inventory is extremely low, it might be worth a “drive-by” or a quick look. However, keep in mind that you cannot bump the primary buyer just by offering more money. You can only win the house if their contract fails on its own. For a self-employed home buyer with limited time, it’s often better to focus on “Active” listings where you can be the primary negotiator.

This is the most common point of confusion when preparing to buy.

• Active Under Contract: The deal has significant contingencies (like an inspection or house sale) that still need to be cleared. The seller is usually still open to backup offers.

• Pending: Most contingencies have been cleared. The buyer’s mortgage is nearly finalized, the inspection is done, and both parties are just waiting for the closing date. The seller is generally no longer looking for backups.

If you are the buyer in the contract, it means you have “equitable interest” in the home. You have a window of time to perform your due diligence. If you are a buyer looking at the listing, it means the house is technically spoken for, but there is still a 10% to 20% chance the deal could fail, giving you a slim opening to step in as a backup.

For a seller, this status is about leverage. It keeps the primary buyer on their toes, knowing that there might be other people waiting in the wings. It also reduces “Days on Market” (DOM) fatigue; if the first deal falls through, the property hasn’t been “dark” for weeks, making it easier to maintain a high asking price with the next interested party.

In the homebuying process, a lot can go wrong between the handshake and the keys. Homes are listed this way to protect the seller. If a buyer has a “home sale contingency” (meaning they have to sell their current house first), the seller knows there is a higher risk of the deal collapsing. Keeping the listing “active” keeps other buyers interested and creates a “safety net” for the seller.

When a property enters this status, the seller and the primary buyer are in an “exclusive” period. However, by keeping the status as “active,” the seller is signaling to the market that they are still willing to entertain “backup offers.” If the primary buyer’s financing fails or the inspection reveals a deal-breaker, the seller can pivot immediately to a backup buyer without having to re-list the home from scratch.

“Active Under Contract” means that the seller has accepted an offer from a buyer, but there are still “contingencies” that must be met before the deal is final. While a legal agreement exists, the sale isn’t a “done deal” yet. Common hurdles like home inspections, appraisals, or the buyer selling their own home are still standing in the way of a closed sale.