In the world of real estate, certain phrases often lead to confusion for home buyers and sellers alike. One such phrase is “Active Under Contract.” If you’ve been browsing listings or working with a real estate agent, you may have seen this status pop up and wondered what it actually means. What does Active Under Contract mean, and how does it affect your ability to buy or sell a property?
Understanding this term is essential whether you’re buying your first home or selling an investment property. In this blog, we’ll break down the full meaning of Active Under Contract, what it means for buyers and sellers, how it differs from other real estate statuses, and what your next steps should be if you’re dealing with a home in this status.
What Does Active Under Contract Mean in Real Estate?
Active Under Contract is a listing status that indicates a seller has accepted an offer on the property, but the home is still technically considered “active” in the market because certain conditions have yet to be met. Typically, this involves contingencies—conditions that must be satisfied before the sale is finalized. Common contingencies include:
- Home inspection
- Appraisal
- Financing approval
- Sale of the buyer’s existing home
So, what does Active Under Contract mean from a practical perspective? It means the property is not fully off the market, but it’s not exactly available either. Think of it as being in a “real estate limbo.”
How Is Active Under Contract Different from Pending?
One of the most common questions that follows “What does Active Under Contract mean” is how it differs from a Pending status.
Here’s the key difference:
- Active Under Contract: The seller has accepted an offer, but the buyer is still working through contingencies.
- Pending: All contingencies have been met, and the transaction is moving toward closing. No further offers are typically accepted.
In short, “Active Under Contract” leaves the door slightly open for backup offers, while “Pending” means the deal is nearly done.
What Does Active Under Contract Mean for Buyers?
If you’re a buyer and come across a home listed as Active Under Contract, you might be asking: Should I still try to make an offer?
The answer is: Maybe. Here’s what you should consider:
1. Backup Offers Are Often Welcomed
Because the home sale is contingent on certain conditions being met, there’s a chance the deal could fall through. If you’re genuinely interested, your agent can submit a backup offer, which the seller may consider if the original buyer backs out.
2. Understand the Contingencies
Ask your real estate agent to find out which contingencies are still open. If it’s something like a financing contingency, there’s a decent chance the deal might not go through. But if it’s just waiting on a final inspection, the odds are slimmer.
3. Time Sensitivity
Even if you do submit a backup offer, you may have to wait weeks to know if the original deal is going to fall through. If you’re on a tight timeline, this can be risky.
So, what does Active Under Contract mean for buyers? It means “proceed with interest—but caution.” You’re not out of luck, but don’t pin all your hopes on the property either.
What Does Active Under Contract Mean for Sellers?
If you’re selling your home and your listing becomes Active Under Contract, it’s a good sign—it means someone wants to buy your home! However, your job isn’t done just yet.
1. Contingency Fulfillment Is Key
You’ll need to cooperate with inspections, appraisals, and possibly renegotiations depending on what those inspections uncover.
2. Backup Offers Can Be Strategic
Even after accepting an offer, you can encourage backup offers. If something goes wrong with the primary buyer, you’ll have a second option ready—saving time and reducing stress.
3. Continue Marketing Strategically
While you won’t be actively marketing your property in the traditional sense, staying visible and encouraging interest can keep your options open.
So, what does Active Under Contract mean for sellers? It’s not the finish line—but you’re getting close. Managing this phase well is critical to ensuring a smooth closing.
Legal and MLS (Multiple Listing Service) Implications
MLS systems require agents to update the status of a property to reflect any changes. When a home is marked as Active Under Contract, it’s a signal to other agents and potential buyers that the home has an offer, but it’s not quite off the market.
Real estate agents must comply with local MLS rules regarding when and how to update listing statuses. Misrepresenting the status could lead to fines or disciplinary action.
Knowing what does Active Under Contract mean in terms of legal obligations helps keep all parties informed and the transaction moving ethically and efficiently.
Can You Tour a House That Is Active Under Contract?
Yes, but it’s at the seller’s discretion. Some sellers may still allow showings, especially if they’re open to backup offers. Others might restrict showings entirely to focus on moving forward with the buyer already under contract.
Talk to your real estate agent about whether touring an Active Under Contract property makes sense based on your buying strategy.
Common Reasons Contracts Fall Through
If you’re considering submitting a backup offer, it’s helpful to understand why deals under contract sometimes fail:
- Financing issues
- Poor home inspection results
- Low appraisals
- Buyer’s remorse
- Sale of buyer’s current home delayed
Understanding these potential pitfalls makes it clearer why keeping a listing Active Under Contract can be a smart move for sellers and why buyers might still have a chance.
Tips for Buyers Navigating Active Under Contract Listings
- Move quickly – Submit backup offers ASAP.
- Stay informed – Ask your agent to check status updates regularly.
- Have patience – The original contract must be honored unless it falls through.
- Consider alternatives – Don’t stop your home search while waiting.
Tips for Sellers with a Home Under Contract
- Stay flexible – You may need to negotiate repairs or credits.
- Communicate clearly – Keep your agent in the loop at all times.
- Prepare for closing – Keep your documents and home in good shape to avoid delays.
Final Thoughts
So, what does Active Under Contract mean? It’s a transitional phase between active listing and a fully pending sale, where a property has an accepted offer but still has contingencies that must be met. For buyers, it’s a glimmer of hope that the door isn’t fully shut. For sellers, it’s a promising sign that the finish line is near, but not quite crossed.
In either case, understanding this real estate status empowers you to make informed decisions, navigate the market more strategically, and know when to act—or wait.
If you’re in a unique situation and need to sell your house fast—even if it’s in the middle of a tricky status like Active Under Contract—we can help. At we buy houses El Paso TX, we specialize in buying homes as-is with cash offers, helping homeowners move on quickly with less stress. Reach out to see how we can help today!
Call us anytime at 713-561-5162 or connect with us on our website and we’ll lay out all of your options for your specific situation.