A couple years ago, I was helping a young couple house hunt in Big Bear—cute, enthusiastic, ready to trade their San Diego rent for mountain air. We’d just found the one: a two-bed A-frame with a wood-burning stove, wraparound deck, and just enough 1970s charm to feel intentional. They were smitten. Then we saw those dreaded words: Under Contract. Cue the collective heartbreak. Now, you may be wondering, what does under contract mean in real estate, and does it mean you’re out of luck? Don’t worry. I’m going to explain what’s really going on when you see that status—and how it doesn’t always mean you’ve missed your shot.
What Does “Under Contract” Mean in Real Estate, Really?
Okay, here’s the simplest way to explain it. When a home is listed as under contract, it means a buyer and seller have signed a purchase agreement, but the sale isn’t final yet. The house is temporarily off the market because someone made an offer that was accepted.
But here’s the kicker: the deal still has hurdles to clear. We’re talking inspections, appraisals, financing approval—you name it. Until the ink is dry at closing, the house is in limbo.
It’s like when two people get engaged: there’s a plan to marry, but the wedding hasn’t happened yet. And sometimes? They break up before the big day.
Why Do Homes Go Under Contract but Still Fall Through?
This happens more than you’d think—especially in high-demand markets or when buyers rush in with aggressive offers.
Financing is a big one. Just because someone says they’re pre-approved doesn’t mean their loan will clear underwriting. Appraisals can throw a wrench in things too—especially if the home doesn’t appraise at the sale price. Add in bad inspection reports or buyer remorse, and suddenly that “sure thing” isn’t so sure anymore.
So if you’ve fallen in love with a home that’s under contract, take a breath. Deals fall apart every day, and your shot might be next in line.
Can You Still Make an Offer on a House That’s Under Contract?
Short answer: yes.
Long answer: it depends on the listing agent, the seller, and how tight the deal feels. Some sellers are only entertaining the current buyer. Others are very open to backup offers—especially if the buyer seems shaky.
If you love a home that’s under contract, talk to your agent and ask them to submit a backup offer. That way, if the current contract crashes and burns, you’re next up—no scramble required. I’ve had clients land their dream homes this way, just by being ready and patient.
What’s the Difference Between “Under Contract” and “Pending”?
This one trips up a lot of folks, so let me break it down.
When a home is “under contract,” it usually still has contingencies in place—those legal “if-thens” like financing, appraisal, or inspection. That means the deal could still fall apart without anyone losing money. When a home is “pending,” most (or all) of those contingencies have been satisfied. The buyer’s loan is secured, the appraisal came through clean, and inspections are done. The finish line’s in sight.
Think of it like this:
| Status | What It Means | Chance to Swoop In |
| Under Contract | Offer accepted, contingencies still active | Moderate to High |
| Pending | Contingencies cleared, sale nearly complete | Low, but not impossible |
Bottom line: If you’re wondering what does under contract mean in real estate, just remember it’s the first big commitment—but it’s not a done deal.
How to Make the Most of “Under Contract” Listings
If you’re seriously house-hunting and keep bumping into homes marked “under contract,” don’t just move on with a sad sigh.
First, talk to your agent and see if the seller is accepting backup offers. Some agents are very open about a deal’s shakiness, especially if it’s a low-down-payment loan or a buyer who asked for the moon during inspections.
Then, get your ducks in a row. That means a solid pre-approval letter, flexible timeline, and as few contingencies as you’re comfortable with. This is your chance to show the seller you’re the safe, reliable second option—and that’s valuable in a market full of uncertainty.
Finally, keep watching that listing. If it goes from “under contract” back to “active,” be ready to jump—because others are watching too.
FAQs About What “Under Contract” Means in Real Estate
Can a seller accept another offer if a home is under contract?
Technically, no. They’ve already agreed to a deal. But they can accept a backup offer, which puts you first in line if the original deal falls through. It doesn’t cancel the current contract but it positions you as the next buyer.
How often do homes under contract fall through?
Nationally, around 10–20% of homes under contract don’t make it to closing. In competitive markets like Big Bear, that number can be even higher when buyers rush to make offers without doing due diligence.
What should I do if I love a home that’s under contract?
Let your agent reach out and see if backup offers are being accepted. If they are, get yours in writing, make it strong, and be patient. Sometimes Plan B becomes Plan A.
Does under contract mean the home is off the market for good?
Not necessarily. It means someone has dibs for now, but real estate deals are full of twists. Don’t count yourself out until the listing status says “sold.”
Final Scoop Before You Jump In
So, what does under contract mean in real estate? It means someone beat you to the punch—but the game isn’t over yet.
As a buyer, don’t assume that label is a dead end. Deals fall apart, inspections reveal surprises, loans get denied. If you’re serious, make a backup offer, stay in the loop, and be ready to move fast if the deal goes sideways.
And as someone who’s been through this rodeo more times than I can count, trust me when I say: sometimes the home you missed ends up being the one that wasn’t meant for you. But the next one? Might be an even better fit—with less drama and fewer hoops to jump through. Keep your heart open, your pre-approval handy, and your agent on speed dial. The mountain’s waiting.
