If you’re selling a home in La Conner, WA, you may come across the term “under contract” as you navigate the real estate process. But what does “under contract” mean, and how does it impact your home sale? Understanding this status is crucial for any home seller, as it represents an important milestone in the journey to closing. Team Kelli Lang, your trusted real estate experts in La Conner, are here to explain what it means for a home to be “under contract,” what to expect during this phase, and how to manage the process effectively.
In this article, we’ll dive into the meaning of “under contract,” the steps involved, and expert tips from Team Kelli Lang to help you make the most of this stage in the La Conner real estate market.
What Does “Under Contract” Mean in Real Estate?
In real estate, a home is considered “under contract” once a buyer has made an offer that the seller has accepted, but the sale has not yet been finalized. This status indicates that both parties have agreed to the terms of the sale, including the purchase price, contingencies, and closing timeline. However, several steps still need to be completed before the property officially changes hands.
For sellers in La Conner, understanding the “under contract” phase is essential because it means you’re one step closer to completing the sale, but there are still conditions that must be met for the transaction to close.
The Process of Going “Under Contract” in La Conner
Once your home goes “under contract,” there are a series of steps that need to be completed before the transaction reaches the closing stage. Here’s an overview of what to expect during this critical period.
1. Negotiating and Accepting an Offer
The journey to “under contract” status begins when you receive an offer from a potential buyer. You may accept the offer as-is, reject it, or negotiate certain terms, such as the purchase price, closing date, or contingencies. Team Kelli Lang will help you evaluate each offer and negotiate favorable terms to ensure you get the best outcome.
Once both parties agree on the terms, you’ll sign a purchase agreement, officially putting the home “under contract.”
2. Satisfying Contingencies
Most real estate contracts include contingencies, which are conditions that must be met for the sale to proceed. Common contingencies in La Conner real estate transactions include:
Inspection Contingency: Allows the buyer to conduct a home inspection and request repairs or negotiate credits if issues are found.
Financing Contingency: Protects the buyer if they’re unable to secure a mortgage loan within a specified timeframe.
Appraisal Contingency: Ensures the property appraises at or above the agreed-upon purchase price. If the appraisal comes in low, the buyer may renegotiate or withdraw from the sale.
These contingencies are in place to protect the buyer, but they can also impact the seller. Team Kelli Lang will help you understand each contingency and work through any issues that arise to keep the transaction on track.
3. Appraisal and Financing Approval
If the buyer is financing the purchase, their lender will require an appraisal to verify the property’s value. The appraiser evaluates comparable sales in La Conner to determine a fair market value for your home. If the appraisal matches or exceeds the agreed price, the financing can proceed. However, if it falls short, additional negotiations may be necessary.
Financing approval is typically the final step in satisfying contingencies, and once it’s secured, the transaction can move closer to closing.
4. Buyer’s Home Inspection
During the inspection period, a licensed home inspector examines the property to identify any potential issues. This inspection is an opportunity for the buyer to assess the home’s condition and request repairs or adjustments if necessary.
As the seller, you may choose to address some of the inspection items or negotiate credits to cover repair costs. Team Kelli Lang can guide you through this process and help you reach a resolution that satisfies both parties.
5. Final Walkthrough
Before closing, the buyer typically conducts a final walkthrough to ensure the home is in the same condition as when the contract was signed. This step is essential to verify that any agreed-upon repairs have been completed and that the property is ready for transfer.
What Happens When Your Home is “Under Contract”?
Once your home is “under contract,” it’s time to prepare for closing. However, until the closing is complete, the sale is not guaranteed. Here are some key things to keep in mind during this period.
The Property Remains Off the Market
While your home is under contract, it’s generally taken off the market, and no new showings are scheduled. However, in some cases, you may consider accepting backup offers as a precaution in case the current contract falls through.
Monitor Progress Closely
The “under contract” phase involves coordination between multiple parties, including real estate agents, lenders, inspectors, and appraisers. Staying on top of deadlines and ensuring that contingencies are met is crucial for a successful closing. Team Kelli Lang will monitor the progress of the transaction, communicate with all parties involved, and keep you informed every step of the way.
Be Prepared for Negotiations
Contingencies may lead to additional negotiations, especially following the inspection or appraisal. Being prepared for potential adjustments can help you navigate this period without stress. Team Kelli Lang’s expert negotiation skills will ensure that your interests are protected while keeping the transaction on track.
Tips for Sellers When a Home is “Under Contract” in La Conner
Successfully navigating the “under contract” phase requires careful preparation and flexibility. Here are some tips to help you make the most of this period when selling your home in La Conner.
1. Be Transparent and Responsive
Transparency is key to building trust with the buyer and keeping the sale moving forward. Be upfront about any known issues with the property and respond to requests for information promptly. This approach can prevent delays and build goodwill with the buyer.
2. Stay Organized
There are many details to track during the “under contract” phase, from inspection reports to loan approval documents. Staying organized and keeping track of deadlines will help you avoid any last-minute surprises. Team Kelli Lang can assist you in managing all documentation and keeping you on schedule.
3. Be Ready for Repairs or Negotiations
After the inspection, the buyer may request repairs or credits. Be prepared to discuss these requests with an open mind. If the issues are minor, addressing them can keep the transaction on track. For larger requests, Team Kelli Lang will help you evaluate the costs and determine the best course of action.
4. Plan Your Move
Once your home is under contract, it’s a good time to start planning your move. While it’s not advisable to move out until the sale is final, preparing early can help ensure a smooth transition.
5. Consider Backup Offers
In some cases, accepting a backup offer can be beneficial in case the original contract falls through. If a second buyer is interested, they can step in if the first contract is terminated. Team Kelli Lang can advise you on whether a backup offer makes sense for your situation.
FAQs About the “Under Contract” Phase in La Conner Real Estate
1. Can a buyer back out when a home is under contract?
Yes, buyers can back out of the contract if a contingency is not met or if they choose to exercise their due diligence rights. Contingencies provide a way for buyers to withdraw without penalty if certain conditions aren’t satisfied.
2. How long does the “under contract” phase typically last?
The “under contract” phase usually lasts between 30 and 60 days, depending on the buyer’s financing, inspection timelines, and any contingencies. Team Kelli Lang will provide an estimated timeline based on your specific transaction.
3. Should I accept backup offers while my home is under contract?
Accepting backup offers can be a smart strategy if you’re concerned about the current contract falling through. Backup offers can provide peace of mind and ensure a quicker sale if the first buyer backs out.
Why Choose Team Kelli Lang for Selling Your Home in La Conner?
Navigating the “under contract” phase requires expertise, attention to detail, and effective communication. Team Kelli Lang brings extensive knowledge of the La Conner real estate market and a commitment to making your home sale as smooth as possible. From negotiating offers to managing contingencies, Kelli Lang and her team are dedicated to ensuring that your transaction proceeds successfully and efficiently.
Whether you’re selling for the first time or have experience in the market, Team Kelli Lang offers the support and guidance you need to achieve the best results in La Conner.
Final Thoughts on the “Under Contract” Phase When Selling in La Conner
The “under contract” phase is an exciting and critical stage in the home-selling process, bringing you one step closer to closing. With a trusted real estate agent like Kelli Lang by your side, you can navigate this period with confidence, knowing that every detail is managed carefully. Team Kelli Lang is here to guide you through each step, ensuring a smooth and successful home sale in La Conner.
If you’re ready to sell your home in La Conner or have questions about the “under contract” process, contact Team Kelli Lang today. Let us help you make the most of your home sale with expert support and local market knowledge.
