What Does Under Contract Continue to Show Mean?

Real estate listings often use specialized terminology. One common phrase is “under contract, continue to show.” Understanding this status is important for both potential buyers navigating available properties and sellers managing their listings. This article clarifies the meaning of this specific real estate term and why a property might carry this designation.

Defining “Under Contract, Continue to Show”

The phrase “under contract, continue to show” indicates a property has an accepted offer. This means a seller has formally agreed to a buyer’s proposal, and a legally binding purchase agreement is in place. This initial agreement typically includes specific conditions, known as contingencies, that must be satisfied before the sale can be finalized. These contingencies create a period where the deal is not yet guaranteed to close.

Despite being under contract, the “continue to show” component signifies that the property remains actively marketed and accessible for viewings by other prospective buyers. Real estate agents can still schedule appointments to show the home. The combined phrase communicates that while an initial deal is progressing, the seller is actively seeking backup offers. This strategy allows the seller to maintain market presence and secure an alternative buyer if the primary contract encounters issues.

Common Reasons for This Status

A property is listed as “under contract, continue to show” when the accepted offer is subject to one or more contingencies. These conditions introduce uncertainty until they are met or waived. Common contingencies include a home inspection, where a buyer assesses the property’s condition and may request repairs or renegotiate terms. Another frequent contingency is financing approval, which allows the buyer to withdraw without penalty if they cannot secure a mortgage loan. Appraisal contingencies are also common, ensuring the property’s appraised value meets or exceeds the purchase price.

Beyond these, a sale might be contingent on the buyer successfully selling their current home, which can significantly extend the timeline and risk of the deal. Until these conditions are resolved, the initial contract could still fall through, prompting sellers to keep the property visible to solicit backup offers. This proactive approach ensures that if the primary deal fails, the seller has a pre-arranged alternative, avoiding the need to re-list the property and restart the marketing process.

What It Means for Potential Buyers

For potential buyers, encountering a property listed as “under contract, continue to show” presents an opportunity. Buyers can still express interest and submit a “backup offer.” A backup offer is a legally binding contract that positions a buyer to purchase the home if the initial accepted offer fails to close. If the current contract terminates due to unmet contingencies, the backup offer can automatically move into the primary position.

The likelihood of a backup offer becoming the primary contract depends on the nature and strength of the contingencies in the existing deal. For instance, a deal contingent on a buyer selling their home might have a higher chance of falling through than one only awaiting a standard inspection. Interested buyers should work closely with a real estate agent to understand the specifics of the situation. An agent can help strategize on making a competitive backup offer, and buyers can typically still schedule viewings of these properties.

What It Means for Sellers

For sellers, maintaining an “under contract, continue to show” status offers several strategic advantages after accepting an initial offer. This approach provides security by establishing a fallback option if the primary deal encounters unforeseen challenges. Having backup offers in place can also provide leverage during negotiations, particularly if the initial buyer seeks concessions after inspections or other contingencies.

This status ensures the property retains visibility and activity within the market. This can prevent the listing from appearing “stale” if the first contract does not proceed to closing. Sellers collaborate with their real estate agents to manage ongoing showings and evaluate incoming backup offers, aiming to secure the most favorable outcome.