What does it mean when a property is "under contract"?

When a property is "under contract," it signifies that a purchase agreement has been signed by both the buyer and the seller. This means that both parties have formally agreed to the terms of the sale, and the property is no longer available for offers or viewing in the traditional sense. The under-contract status typically indicates that the transaction is moving toward closing, although it may still be contingent on certain factors, such as inspections or financing.

This status reflects a significant step in the real estate transaction process, as it shows that negotiations have reached a point of agreement, and both parties have committed to the transaction in a legally binding manner. While the property is not officially sold until the closing process is complete, being under contract indicates that both parties are actively engaged in moving the sale forward.