What does it mean when a property is 'under contract'?

When a property is said to be 'under contract,' it signifies that a purchase agreement has been signed by both the buyer and the seller. This means that the terms of the sale have been agreed upon, and both parties are legally obligated to follow through with the transaction, barring any contingencies that may arise.

Being 'under contract' reflects a significant step in the real estate process, as the property is essentially reserved for the buyer, and the seller can no longer sell to another party unless the contract is terminated or the conditions are not met. This phase typically indicates that due diligence processes, such as home inspections and financing approval, are about to take place before the final closing.

In contrast, the other options do not accurately define the status of a property being 'under contract.' For instance, while it is true that the property is no longer available for sale to other buyers, this is a consequence of the contract rather than the defining feature. Similarly, while the seller may consider multiple offers before accepting one, this situation does not specifically relate to the property being officially under contract. Lastly, appraising and pricing take place at earlier stages and are not a requisite for a property to be under contract.