If you’ve been browsing homes on Zillow recently, you may have come across listings labeled as “Active Under Contract.” While the name sounds a bit contradictory—how can a home be both “active” and “under contract?”—this term is part of the real estate process used to signal a particular stage of the buying journey. For prospective homebuyers, understanding what this label means can save time, set expectations, and even help snatch up a home that’s still within reach.
TL;DR (Too Long; Didn’t Read)
When a home on Zillow is marked as “Active Under Contract”, it means the seller has accepted an offer, but certain contingencies must be met before the sale is finalized. The property is technically still active, meaning the seller might still be accepting backup offers. It’s distinct from other phases like “Pending” or “Contingent.” For buyers, this status offers a narrow window of opportunity—if you’re willing to take a chance.
What Does “Active Under Contract” Really Mean?
The label “Active Under Contract” is used in MLS (Multiple Listing Service) databases and reflected on real estate platforms like Zillow. When you see this status, it essentially means:
- The seller has accepted an offer on the property.
- The offer includes one or more contingencies that must be satisfied before the deal can close.
- The sale is not final, and the home is still technically available for backup offers.
Contingencies are conditions that either the buyer or seller must meet for the deal to proceed. Common types include:
- Home inspection: The buyer can back out based on findings from the home inspection.
- Financing: The buyer needs to secure a home loan.
- Appraisal: The lender requires the home to appraise for a certain value.
Until those conditions are lifted or resolved, the contract is still in a kind of “limbo,” and thus the listing remains active—but with a caution flag.
How Does It Differ From Other Statuses on Zillow?
Real estate listings on Zillow can bear different labels that often confuse buyers. Here’s how “Active Under Contract” compares with other common statuses:
1. Active
This means the house is available and not under any contract. Offers are being accepted, and no offer has been formally accepted yet.
2. Contingent
Contingent is similar but may imply a more advanced stage in the contingency process. The seller has accepted an offer, but one or more contingencies must be fulfilled. Some agents or MLS systems use “contingent” interchangeably with “active under contract,” but the terminology varies by location.
3. Pending
Once a property is marked as “Pending,” it means all contingencies have been met, and the sale is just waiting to close. At this point, the seller is usually no longer accepting offers.
4. Sold
As expected, “Sold” means the transaction is complete, the deed has been transferred, and the property is no longer available.
Why Do Sellers Keep Listings ‘Active’?
You might wonder: If a seller has accepted an offer, why keep the listing open at all? Good question. There are several strategic reasons:
- Backup offers: If the current buyer fails to meet a contingency or backs out, the seller already has another offer lined up.
- Leverage: Sometimes, having additional interest can push the original buyer to move faster or waive conditions.
- Market visibility: Keeping the listing active maintains visibility in Zillow and other platforms, which is crucial in a hot market.
So “Active Under Contract” serves as a kind of safety net for the seller, while keeping the door slightly ajar for other potential buyers.
Should Buyers Still Make an Offer?
You might be tempted to scroll right past “Active Under Contract” listings, thinking the opportunity is gone. But here’s the secret: you can still make a back-up offer, and sometimes, these deals fall through.
Here are a few reasons you might still consider making an offer:
- Contingencies fail: If the buyer can’t get financing or fails inspection negotiations, the contract can be terminated.
- Buyer remorse: Occasionally, buyers simply change their minds and pull out.
- You’re flexible: If you’re not in a rush to buy, placing a back-up offer means you’re first in line if things go south.
That said, be realistic. Most deals that reach the “Active Under Contract” phase do go through. But if you absolutely love the home and are willing to be patient, it might be worth your while.
Understanding Regional Differences
Real estate terminology is not always standardized across the U.S., and MLS systems can vary by region. What one area labels as “Active Under Contract,” another may call “Contingent” or “Conditional.”
Real estate agents in your area will understand these nuances. If you’re serious about a property, don’t be shy—ask them to clarify the current stage of the sale and whether it’s worth submitting an offer.
Risks of Ignoring This Listing Status
Buyers unfamiliar with what “Active Under Contract” means may either underestimate the opportunity or experience false hope. Here’s what could happen:
- Wasted time: If you set your heart on the home and the initial buyer’s offer holds strong, you may have to move on regardless of your backup offer.
- Missed opportunities: On the flip side, ignoring these listings altogether can mean missing out on a home that becomes available again if the first deal collapses.
- Miscalculated strategy: An uninformed buyer might assume the home is more available than it really is, skipping properties that are genuinely active and in a better position for negotiation.
How to Stay Informed
If you’re house hunting seriously, consider these tips to stay ahead of the game:
- Set alerts on Zillow: You can customize your alert settings to track specific types of listings, including those under contract.
- Work with a realtor: Agents have direct access to the MLS and can often give you up-to-date information before it hits the general public listings.
- Make quick decisions: In competitive markets, speed can be your greatest advantage. If you’re eyeing an active under contract home, have your offer and pre-approval ready to deploy quickly.
Conclusion
“Active Under Contract” might sound confusing at first, but it’s really just a small chapter in the home-selling story. It presents a unique, often overlooked opportunity for buyers who are persistent, savvy, and just a little bit lucky. Next time you’re browsing homes on Zillow and see this label, remember: the game might not be over. It could just be entering its most interesting phase.
As with most things in real estate, knowledge is power—and now that you understand what “Active Under Contract” means, you’re one step closer to making a smart move in a competitive market.
