What Is Under Contract in Real Estate?
A property is considered under contract when the buyer and seller have signed a purchase agreement, but the deal hasn’t yet closed. It’s an important MLS status that shows the home is off the market while inspections, contingencies, and financing are still being worked out.
How “Under Contract” Works in the MLS
When a seller accepts an offer, both parties sign a purchase agreement, and the listing’s MLS status changes to Under Contract. During this time:
- The buyer submits earnest money to show good faith.
- Inspections and appraisals are scheduled and reviewed.
- Contingencies—such as financing or home-sale conditions—must be satisfied or waived.
- If all contingencies are cleared, the property status changes to Pending and moves toward closing.
If contingencies fall through, the home may revert to Contingent status or even return to active.
Why “Under Contract” Matters for FSBO Sellers
For For Sale By Owner (FSBO) listings, updating your MLS status accurately protects your deal and improves transparency. When your home is under contract, it tells agents and buyers that an offer has been accepted—but the sale isn’t final yet.
This stage often involves inspection periods, title work, financing approvals, and other final steps before closing. Managing this stage correctly helps prevent confusion and duplicate offers.
How to List Your FSBO on the MLS
Listing your home on the MLS gives it maximum visibility while you stay in control of the sale. With Brokerless, you can get listed for one flat fee—no 6% commission—and reach buyers on Realtor.com, Zillow, and more.