Under Contract in Real Estate: Sold, or Still in Play?
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Under contract means the seller has accepted an offer and both parties have signed a purchase agreement. It’s not final. About 6% of contracts nationally fall through within three months, per NAR’s own data, usually over inspection, financing, or appraisal issues. A backup offer can still work.
We hear this from buyers constantly: they find the one, and it’s already “under contract.” It feels like the door just closed. Most of the time, it hasn’t.
The offer that’s accepted but not yet final.
What does under contract actually mean
A house goes under contract the moment the buyer and seller both sign a written purchase agreement. That agreement is legally binding. The seller can no longer sell to anyone else as long as both parties meet the terms.
But most contracts carry contingencies: conditions that must still be satisfied. Financing has to come through. The inspection has to check out.
The appraisal has to support the price too. Miss one of those, and the deal can still collapse before closing.
| Status | What it means | Can you still offer? |
|---|---|---|
| Active | No accepted offer yet | Yes, directly |
| Active under contract | Offer accepted, seller still showing the home | Yes, as a backup |
| Under contract / Pending | Offer accepted, contingencies still pending | Usually only as a backup |
| Sold | Deal closed | No |
Under contract vs active under contract vs pending
“Active under contract” and “pending” get used loosely, and different MLS systems label them differently. The practical difference is whether the seller is still actively showing the home and collecting backup offers.
The active under contract meaning comes down to one question: is the seller still collecting backup offers? A listing marked that way usually says yes. A straight “pending” often means active marketing stopped, even though the deal technically isn’t closed yet. Our contingent offer guide covers the specific conditions that keep a contract from being fully locked in.
Can the seller still accept other offers?
Yes, as backups. Realistically, not much changes for you as the buyer trying to get in line. The seller generally can’t cancel the current deal just because a better offer shows up later. A contract is a contract.
What they can do is keep showing the property and collecting backup offers, in case the first deal falls apart. It’s up to the seller and their broker whether to actively pursue that. Many do, because deals fall through often enough to make it worth the effort.
Why deals fall through, and how often
Nationally, about 6% of contracts were terminated in a given three-month window as of mid-2025, according to NAR’s own REALTORS Confidence Index. That rate has held between 4% and 7% since March 2023.
The leading causes are the same three every time. The home inspection turns up something serious. The buyer’s financing falls through, or the appraisal comes in below the contract price.
Redfin, using actual MLS data rather than a survey, put contract cancellations at 16.3% in December 2025, the highest share it’s tracked since 2017. As Redfin’s head of economics research, Chen Zhao, put it, “High housing costs and rising inventory have made homebuyers more selective.” The two numbers measure different things, self-reported terminations versus a broader read of canceled pending sales, so don’t average them together. Either way, the takeaway is the same: a meaningful share of “under contract” listings come back on the market. Our mortgage contingency guide specifically covers the financing aspect.
Should I submit a backup offer?
If you genuinely want the place, yes. A backup offer costs you nothing but the time to write one. A failed inspection, a co-op board rejection, financing that didn’t come together — any of it can end the first deal. If it does, you’re already in line instead of starting from scratch.
Keep looking at other listings while you wait. Don’t put your search on hold for one backup slot. If your backup offer does get accepted, you’ll move fast. Staying pre-approved and ready with a clean offer letter matters more here than in a normal search.
What we tell clients chasing an under-contract listing
Get pre-approved before you write the backup offer, not after. If the primary deal collapses, sellers often want an answer within days, and a buyer who still needs financing sorted out loses that window. Our pillar guide to due diligence covers the rest of what to check once your own offer is accepted, including title, inspection, and disclosure steps.
Once you’re actually under contract yourself, the next real planning question is what you’ll owe at the closing table. Our NYC closing costs calculator breaks that down, and our buyer rebate can offset a real share of it.
Common questions
Does under contract mean the house is sold? No. It means an offer was accepted and both sides signed, but contingencies are usually still pending. The deal isn’t final until closing.
What’s the difference between “under contract” and “pending”? They’re often used loosely. “Active under contract” usually means the seller is still collecting backup offers; “pending” often means active marketing has stopped, even though the sale hasn’t closed.
Can I still make an offer on a house that’s under contract? Yes, as a backup offer. The seller can’t cancel the accepted deal to get a better one, but they can accept backup offers in case it falls through.
How often do contracts fall through? About 6% nationally in a given three-month window, per NAR’s own data. Redfin’s independent figure, based on actual MLS data, was 16.3% in December 2025, a record for that month.
Can a seller back out of an accepted contract? Generally, not just because a higher offer appears. A signed purchase agreement is legally binding on both sides, with narrow exceptions defined in the contract itself.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
