As a prospective buyer or seller of a property, you might have heard the term «under agreement real estate» quite often. But what exactly does this term mean, and what implications does it have for you?
Simply put, under agreement real estate refers to a property that has a purchase offer accepted by the seller, but the sale has not yet been finalized. During this period, the property remains under contract, and both parties (the buyer and seller) are bound by a specific set of terms and conditions.
For the buyer, this means that they can proceed with the due diligence process, which includes conducting inspections, appraisal, and reviewing any other relevant information about the property. This process usually takes a few weeks and is crucial to ensure that the buyer is making an informed decision.
During this time, the seller cannot entertain any other offers, and the property is effectively off the market. If the buyer finds any significant issues with the property during the due diligence process, they can negotiate with the seller to either lower the purchase price or fix the issues before closing the sale.
If all goes well, the sale will proceed to the closing stage, where all necessary documents are signed, and the property ownership is transferred to the buyer. At this point, the property is no longer under agreement, and the seller can no longer entertain any other offers.
For sellers, under agreement real estate means that they have a buyer who is committed to buying their property. This can be a relief for sellers, who no longer have to worry about finding a buyer for their property and can focus on the closing process. However, it also means that the seller cannot entertain any other offers, which can be a disadvantage if they receive a more lucrative offer later on.
In conclusion, buying or selling under agreement real estate can be a complicated process that requires careful consideration and attention to detail. It`s crucial to work with experienced professionals, including real estate agents and attorneys, who can guide you through the process and ensure that you`re making informed decisions at every step. Remember, under agreement real estate is a binding contract that can have significant financial implications for both parties, so it`s crucial to proceed with caution and diligence.