Can You Show a House That Is Under Contract?

A common question for buyers and sellers is whether a house can still be shown after an offer is accepted. The term “under contract” can be confusing, as it implies a deal is in progress, yet the property may still appear active. Understanding this status is important because an accepted offer does not always mean a finalized sale.

Understanding “Under Contract” Status

When a home is “under contract,” the seller has accepted a buyer’s offer, and both parties have signed a purchase agreement. This agreement outlines the sale terms, including price. However, the sale is not complete; it is contingent upon various conditions being met within a specified timeframe.

Common contingencies protect both buyer and seller, ensuring requirements are met before the transaction becomes legally binding. These often include a home inspection, allowing the buyer to assess defects, and an appraisal, ensuring the home’s value aligns with the sales price for financing. Financing contingencies are also common, making the sale dependent on the buyer securing a mortgage.

A title contingency allows for a title search to confirm clear ownership and address any liens. A home sale contingency may also be included if the buyer needs to sell their current property to finance the new purchase. Until all these conditions are fulfilled or waived, the deal remains conditional and can potentially fall through.

Reasons for Continued Showings

Sellers and their agents often continue to show a home even after it is under contract. The primary reason is to solicit “backup offers.” A backup offer can become the primary contract if the initial deal collapses due to unfulfilled contingencies, such as issues with financing, inspection, or appraisal.

This approach provides sellers with security and leverage, especially in competitive markets. Another reason for continued showings is a “kick-out clause” in the initial contract. This clause allows the seller to market the property and accept a stronger, non-contingent offer. The initial buyer then has a short window, often 72 hours, to remove their contingencies or be “kicked out” of the deal. Such clauses are beneficial when the initial offer is contingent on the buyer selling their existing home.

Viewing a Home That Is Under Contract

Potential buyers can still view and submit an offer on a home listed as “under contract.” This offer functions as a “backup offer,” moving into the primary position only if the initial contract terminates. Buyers should understand that while a backup offer puts them next in line, there is no guarantee the primary deal will fall through.

If considering a backup offer, buyers should still conduct due diligence, including home inspections and securing financing pre-approval. This prepares them to proceed swiftly if their backup offer becomes active. While being in line for a desired property can be advantageous, buyers should remain realistic and explore other options. The waiting period can be uncertain. A backup offer is a legally binding contract that, if accepted, commits the buyer to purchase the home if the first offer fails.

Seller Considerations for Continued Showings

When a seller accepts an offer, continuing to show the home involves weighing benefits against inconveniences. A significant advantage is the security of backup offers, preventing the property from being re-listed if the primary deal fails. This saves time and reduces stress, as many real estate contracts do not close. Continuing showings also maintains market interest, potentially creating urgency for the primary buyer to meet their obligations.

However, continued showings can be disruptive for sellers, requiring them to keep their home show-ready and accommodate appointments. Sellers should communicate clearly with their agent about their comfort level and expectations. Transparency with potential backup buyers is important, ensuring they understand the “under contract” status and the conditional nature of any new interest or offer. This manages expectations for all parties, clarifying that while interest is welcome, the property is bound by an existing agreement.