As a real estate expert with extensive experience in property transactions, I can provide you with a detailed understanding of the duration a house can be under contract. The term "under contract" indicates that a property has received an accepted offer from a buyer, which is subject to certain conditions or contingencies that the buyer has stipulated. These contingencies often include inspections, securing financing, and the sale of the buyer's current home, among others.

### Factors Affecting Contract Duration:


1. Contingencies: The number and complexity of contingencies can significantly impact the length of time a house remains under contract. For instance, if a buyer has several conditions that must be met before the sale can proceed, this can extend the contract period.


2. Financing: If the buyer is obtaining a mortgage, the time it takes to secure financing can vary. This process includes the buyer's credit check, appraisal of the property, and the lender's approval, which can take several weeks.


3. Inspections: Home inspections are crucial and can uncover issues that may require negotiations or repairs, potentially delaying the closing process.


4. Seller's Response: The seller's willingness to negotiate or make repairs can also affect the timeline. If the seller is prompt and cooperative, the process can be expedited.


5. Market Conditions: In a seller's market, where demand is high, sellers may be less willing to entertain long contingencies, which can shorten the contract duration.


6. Legal Requirements: Certain legal processes and paperwork must be completed before a sale can be finalized. These can include title searches, surveys, and the drafting of legal documents.

7. **Buyer's and Seller's Preparedness:** How well prepared both parties are can influence the speed at which the contract moves toward closing. For example, if the buyer has a pre-approval letter from a lender, it can speed up the process.

8.
Negotiation of Closing Date: The contract will typically include a proposed closing date, which is subject to negotiation and can be influenced by the factors mentioned above.

### Average Contract Duration:

While it's challenging to pinpoint an exact duration as each transaction is unique, most residential real estate sales in the United States tend to close within a 45-60 day timeframe from the date the contract is signed. This average can fluctuate based on the factors listed above.

### Exceptions and Extensions:

- Extensions: If the buyer and seller agree that more time is needed to meet the contingencies, they can negotiate to extend the contract.
- Expiration: If the contingencies are not met within the agreed-upon time frame, the contract may expire, and the deal could fall through unless an extension is agreed upon.

### Closing the Sale:

The closing process involves finalizing the paperwork, transferring the title, and disbursing funds. This typically happens at a title company or attorney's office and can take a few hours.

### Conclusion:

Understanding the factors that can influence the duration of a contract is crucial for both buyers and sellers. Being aware of these factors can help in setting realistic expectations and preparing for a smoother transaction process. It's always advisable to work with experienced real estate professionals who can guide you through the complexities of the contract period and help ensure a successful sale.

read more >>

Under Contract means that an offer has been accepted on the property subject to whatever contingencies the buyer has asked for such as inspections, financing, needing to sell a house etc. Most sales take 45-60 days to close.Mar 13, 2011read more >>