Expert: Dick Dennis - 6/1/2009

Question
Hello, i am a first home buyer and i have found a house that i want and it was for sale but now the realtor is asying the house is under contract now. Please tell me what a house being under contract means? would i be able to still purchase that home?

Answer
What the Realtor has told you is that a buyer and seller have already agreed to a sale of that property, Tiff. Now they wait for the buyer to qualify for a new loan and the closing. It may be or may not be subject to the buyer qualifying for his/her loan for that property. If for some reason you believe that the buyer will pull out or not buy that property, you may ask your Realtor to submit your offer to purchase as a "backup." That means you would have to wait to see if the buyer in first position actually does close on the sale of that property, or you would have to wait to see if the buyer could not qualify for their loan. My question is why did your Realtor show you that house if it was already under contract? It seems to me that you should use another Realtor to help you find another house. I do wish you well, Tiff.

Dick Dennis
dixiedee13@aol.com