What does it mean when a property is said to be "under contract"?

When a property is described as "under contract," it means that an accepted offer has been made by a buyer and agreed upon by the seller, and they are now in the process of finalizing the terms of the sale. This status indicates that the seller is not actively looking for other buyers since they have committed to a transaction with the current party. During this phase, various steps such as inspections, appraisals, and financing are typically undertaken to ensure that the sale can proceed smoothly to closing.

The term "under contract" highlights a significant step in the real estate transaction process, marking the transition from negotiation to a binding agreement between the buyer and seller. It doesn't imply that the property is withdrawn from the market altogether; instead, it signifies that a serious commitment has been made from both sides to move toward closing the sale.