If you’ve been browsing real estate listings, you may have seen the term “Active Under Contract” and wondered: Is the home still available? Can I make an offer? Is it already sold?
This blog breaks down what “Active Under Contract” means, how it impacts buyers and sellers, and how working with a Howard Hanna agent can help you navigate the process with confidence.
What Does “Active Under Contract” Mean?
“Active Under Contract” means a seller has accepted an offer from a buyer, but the transaction is not yet final. There are still contingencies that need to be resolved—such as a home inspection, appraisal, loan approval or the sale of the buyer’s current home.
During this phase, the property remains “active” in the Multiple Listing Service (MLS), which means other buyers may still submit backup offers, depending on the seller’s preferences and local MLS rules.
Think of it as the home being “spoken for,” but not yet sold.
How Is This Different From “Pending”?
A “Pending” status means all contingencies have been satisfied or waived and the property is on track to close. Typically, new offers are no longer accepted.
“Active Under Contract” indicates that the deal is still in progress and backup offers may be considered, offering a potential opportunity for buyers.
Understanding this distinction is essential if you’re trying to time your move or act quickly on a desirable home.
Why Do Homes Stay Active After Going Under Contract?
Several factors can explain why a home remains “active” even after going under contract:
- Contingency Risk: Sellers may want protection in case the buyer fails to meet agreed-upon contingencies.
- Market Leverage: Staying active can keep buyer interest high and offer the seller more negotiating power.
- MLS Rules: Some MLS systems require homes to remain active until certain steps are completed.
Howard Hanna agents understand these nuances and can help you determine what this means for your particular buying or selling situation.
What It Means for Buyers
If you’re a buyer and you see a home marked “Active Under Contract,” you still have options:
- Submit a Backup Offer: Sellers may accept backup offers. If the original deal falls through, your offer could move into first position.
- Monitor the Status: Your agent can track the deal’s progress and alert you to changes, such as failed inspections or financing issues.
- Stay Flexible: While you shouldn’t put all your hopes on one property, being ready with a backup offer can work in your favor.
What It Means for Sellers
For sellers, keeping a listing “Active Under Contract” can provide several advantages:
- Protection Against a Failed Deal: If the current buyer backs out, you may already have other interested buyers lined up.
- Continued Exposure: The home remains visible to prospective buyers, helping you pivot quickly if needed.
- Negotiation Leverage: Backup offers can motivate the primary buyer to meet their obligations promptly.
Your Howard Hanna agent will guide you through these decisions and ensure all contractual and legal requirements are managed correctly.
How Howard Hanna Helps Navigate Contingent Sales
Howard Hanna offers full-service real estate solutions to help you manage every phase of the transaction:
- Expert Guidance: Our agents are trained to interpret complex listing statuses and negotiate on your behalf.
- Exclusive Access: Programs such as Buy Before You Sell and Find It First® allow you to discover listings early and stay competitive.
- Backup Offer Strategy: Your agent can craft a strong backup offer that keeps you in the running for your dream home.
- Seamless Support: In-house mortgage, title, insurance, and relocation services ensure coordination during contingency periods.
Frequently Asked Questions
Can I tour a home that is Active Under Contract?
In many cases, yes. Your Howard Hanna agent can confirm with the listing agent if showings are still permitted.
Is it worth making a backup offer?
Yes. In a competitive market, a well-positioned backup offer can lead to success if the first deal falls through.
How often do Active Under Contract homes return to the market?
It varies, but nationally, about 15–20% of home sales under contract do not close. Your agent can share local statistics.
Conclusion
Understanding what “Active Under Contract” means can help you act strategically—whether you’re buying, selling, or simply keeping an eye on the market. While the home may not be fully available, it isn’t off-limits either.
Howard Hanna Real Estate Services is here to guide you with local expertise, national reach and a commitment to delivering exceptional results.
Looking to make your move? Connect with a Howard Hanna agent today.
