What does it mean when a property is under contract?

When a property is under contract, it indicates that there is a legally binding agreement for sale between the buyer and the seller. This means that both parties have negotiated the terms, such as the sale price and any contingencies, and have mutually agreed to move forward with the transaction. At this stage, the property is typically taken off the market, as the seller has committed to the buyer and is awaiting the completion of further steps, such as inspections and financing, needed to finalize the sale.

This status is crucial as it signifies a serious intent from both parties to complete the sale, contrasting with the situation where a property is still being actively marketed or where various assessments are still ongoing.