When purchasing a home, one of the most important aspects to consider is how long it takes to close a deal. The time frame between when a potential buyer makes an offer on a home and when the transaction is completed can vary significantly. This period is known as the “active under contract” period. So, how long is a house active under contract? Let’s take a closer look.
The active under contract period is the time frame during which a seller has accepted an offer from a buyer, but the deal has not yet closed. During this period, the seller cannot accept any new offers from other potential buyers. It is important to note that the exact duration of this period can vary greatly and depends on a variety of factors.
The length of the active under contract period is largely determined by the complexity of the transaction. For example, a cash sale may be completed within a matter of days, while a transaction involving financing, inspections, and repairs may take several weeks or even months.
The active under contract period can also be affected by local market conditions. In a seller’s market, where demand outstrips supply, the active under contract period may be shorter since there may be more competition for homes. In a buyer’s market, however, where supply exceeds demand, the active under contract period may be longer since there may be fewer buyers interested in purchasing homes.
Additionally, the length of the active under contract period may be influenced by external factors such as holidays, weekends, and weather conditions. For instance, home inspections and repairs may be delayed due to inclement weather or holiday periods.
In general, the average length of time that a house is active under contract is around 30 to 45 days. However, as mentioned above, this can vary greatly depending on various factors.
If you are a buyer, it is important to understand the active under contract period when making an offer. You should work with your real estate agent to determine how long it typically takes to close deals in your local market and adjust your offer accordingly.
If you are a seller, it is important to choose a buyer who is motivated, reliable, and financially stable. This can help ensure that the active under contract period is as short as possible and that the deal closes on time.
In conclusion, the length of time that a house is active under contract can vary greatly depending on various factors such as market conditions, complexity of the transaction, and external factors. Understanding the active under contract period is important for both buyers and sellers to ensure a smooth and timely transaction.