Zillow's 'Active Under Contract' Explained

Nov 8, 2025 by Admin 43 views

Hey everyone, ever stumbled upon a Zillow listing and seen the words "Active Under Contract"? It's a phrase that can seem a bit cryptic, right? Especially when you're deep in the house-hunting game. Well, fear not! We're gonna break down exactly what "Active Under Contract" means on Zillow, so you can navigate the real estate waters like a pro. Think of it as your insider guide to understanding this crucial status. So, let's dive in and demystify this real estate jargon, shall we?

Deciphering "Active Under Contract" on Zillow: The Core Meaning

Okay, so the big question: what does “Active Under Contract” mean on Zillow? Simply put, it means that the seller has accepted an offer from a buyer, and both parties are working towards closing the deal. This is a significant step in the home-selling process. It's like the moment after the first date when you both agree to see each other again. The house is technically still on the market, but it's got a dance partner, and it's pretty serious! It’s important to understand this because it dramatically changes your strategy as a potential buyer. You're no longer in a free-for-all; you're playing catch-up, but there's still a glimmer of hope.

The listing will remain "Active Under Contract" typically until one of two things happens: the sale closes successfully, or the contract falls through. If the sale closes, the status changes to "Sold." If the contract crumbles, the status usually reverts back to "Active," which means the house is back on the market, and you're back in the game! Reasons a contract might fall through can range from issues with the inspection, the buyer's financing, or even unexpected problems with the title. Understanding this keeps you informed and helps you make smarter decisions. It is super important when trying to navigate the real estate market because this is an indication of how hot the market is and how quickly homes are selling. Keep your eye on this status!

This status informs you on the progress of the home in the market. It can give you an advantage, particularly if you are watching listings closely. Imagine you have found a home and have a great interest in making an offer. Finding that the property is under contract might be a letdown, however, you can also consider how quickly the market is moving and how much interest there is in homes like the one you are considering. This information could push you into making an offer on a similar property. Or, if the property is desirable enough, you can still consider making an offer and waiting for the original to fall through. Many factors play a role in making a buying decision, and understanding this term and its place in the market can help.

Different Flavors of "Under Contract": Contingent vs. Pending

Now, here’s where things get a bit more nuanced. Not all "Active Under Contract" listings are created equal. You’ll often see variations, such as "Contingent" or "Pending." Let’s break these down, so you know what you’re really looking at. This is critical because it will influence your ability, and the likelihood, of buying the property.

Contingent

When a listing is “Contingent,” it means the sale is dependent on certain conditions being met. These conditions, or contingencies, are part of the contract and need to be satisfied before the sale can be finalized. Common contingencies include:

Inspection Contingency: The buyer has a specific amount of time to conduct a home inspection. If the inspection reveals significant issues, the buyer can renegotiate the price, request repairs, or even back out of the deal.
Appraisal Contingency: The buyer's lender requires the home to appraise for at least the purchase price. If the appraisal comes in lower, the buyer might need to renegotiate the price or make up the difference.
Financing Contingency: The buyer's ability to secure a mortgage is contingent on the lender's approval. If the buyer can't get financing, they can back out of the deal without penalty.
Sale of Buyer's Property Contingency: The buyer's purchase is contingent on them selling their current home first. This is less common but can happen.

Contingent listings are still active, but they are in a holding pattern. Depending on the type of contingency, you might have a shot at making a backup offer, which we'll discuss in a bit.

Pending

"Pending" status indicates that the deal has passed the contingency period and is moving toward closing. Basically, all the hurdles have been cleared (or waived), and the sale is almost a done deal. While it's still possible for a deal to fall through at this stage, it's less likely. At this stage, it will be hard to make an offer and have it considered. You can still try, but it is unlikely to succeed.

In both “Contingent” and “Pending” situations, it’s a good idea to keep an eye on the listing. Things can change, and you might get a second chance.

Can You Still Make an Offer on an "Active Under Contract" Listing?

Alright, this is the million-dollar question: Can you still make an offer on a house that’s “Active Under Contract”? The short answer is yes, but with some caveats. It depends on the situation and what the seller is willing to do. In certain circumstances, the seller might accept a backup offer.

Backup Offers: Your Second Chance

A backup offer is exactly what it sounds like. It's an offer made by a potential buyer on a property that's already under contract, with the understanding that the offer will only be considered if the first contract falls through. If the first deal falls apart, your backup offer jumps to the front of the line. Your chances here depend on the type of contract and the current market. Keep the following points in mind:

Contingent Contracts: If the original contract has contingencies, there's a higher chance of it falling through. A backup offer can be very appealing to the seller in this case, especially if the original contract has an inspection or financing contingency.
Pending Contracts: It’s less likely the seller will consider a backup offer when the status is "Pending", but it’s not impossible. However, the closer to closing, the less likely it is.
Market Conditions: In a hot seller's market, sellers are less likely to accept backup offers because they're confident they can find another buyer quickly. In a buyer's market, they might be more receptive to the idea.

Making a backup offer shows that you're interested and proactive. If the first deal crashes and burns, you could be in a position to swoop in and snag the house!

How to Make a Backup Offer

If you're interested in making a backup offer, here's the typical process:

Talk to Your Agent: Your real estate agent will reach out to the listing agent to see if the seller is accepting backup offers. They'll also find out the status of the current contract and any potential red flags.
Submit Your Offer: If the seller is open to backup offers, you'll submit a formal offer. Make sure it includes the same terms as a regular offer.
Contingencies and Terms: The backup offer will likely be contingent on the first contract failing. You can include any contingencies you need, such as an inspection or financing.
Waiting Game: If the first contract falls through, your offer automatically becomes the primary offer, and you're one step closer to owning the house. If the first contract closes successfully, your backup offer becomes void.

Monitoring Listings and Staying Ahead

Okay, so we've covered a lot. But how do you actually find these "Active Under Contract" listings and keep an eye on them? Here are a few tips to stay ahead of the game:

Use Zillow’s Search Filters: Zillow allows you to filter your search by status. You can search specifically for "Active Under Contract" listings, which can give you an edge.
Set Up Alerts: Create a Zillow account and set up email or push notifications for listings that match your criteria. This way, you'll be notified the moment a new listing hits the market or when the status changes.
Work with a Realtor: A local real estate agent has access to the MLS (Multiple Listing Service), which provides the most up-to-date and accurate information about listings. They can notify you of new listings that meet your needs. They'll also provide insight into the local market. This is helpful to understand the likelihood of a contingency falling through.
Check Frequently: Check Zillow regularly to see if the status of any homes you like has changed. Be persistent. The market can change at any moment, and keeping up with the latest information can give you an edge.

The Bottom Line: Navigating the Market

Understanding "Active Under Contract" on Zillow is super important if you are trying to buy a home, especially if the market is competitive. It's a reminder that the real estate game is constantly moving. The best buyers are informed buyers. By knowing what to look for, how to interpret the different statuses, and when to consider backup offers, you can give yourself a better chance of landing your dream home. Stay informed, stay proactive, and good luck with your house hunt, guys! Hopefully, this helps you navigate the market with more confidence. Happy house hunting!