If you’re house hunting in Nashville, Mt. Juliet, or anywhere in Middle Tennessee, you’ve probably seen a home you loved… only to notice it says “Under Contract” or “Active Under Contract.”
Cue the panic.
Does that mean it’s gone?
Can you still make an offer?
Should you even bother asking your agent?
Let’s break down exactly what “under contract” means in the Nashville real estate market — and what your options actually are.
What Does “Under Contract” Mean?
When a home is listed as under contract, it means:
• A buyer made an offer
• The seller accepted it
• BUT certain conditions (called contingencies) still need to be satisfied
In other words, the home is not sold yet.
In Middle TN, this usually means the buyer still needs to:
- Complete the home inspection
- Finalize mortgage approval
- Have the home appraised
- Possibly sell their current home
Until those items are completed, the deal is not final.
What Does “Active Under Contract” Mean?
In many Nashville-area MLS listings, you’ll see the phrase:
Active Under Contract
That means the seller is still allowing showings and may accept backup offers.
This is important.
It tells you that while there is a contract in place, the seller knows things can fall apart — and they’re keeping options open.
Under Contract vs Pending (What’s the Difference?)
This is where buyers get confused.
Under Contract
Contingencies are still in place.
There’s still risk the deal could fall through.
Backup offers may be accepted.
Pending
All contingencies have been removed.
Financing is solid.
Closing is approaching.
Backup offers are unlikely.
In short — a pending home is much closer to being sold than an under contract home.
Can You Make an Offer on a House That’s Under Contract in Tennessee?
Yes. You absolutely can.
It’s called a backup offer.
A backup offer puts you next in line if the first contract falls through.
And here’s something most buyers don’t realize:
A surprising number of contracts DO fall apart.
Inspections reveal major repairs.
Appraisals come in low.
Financing gets denied.
Buyers get cold feet.
In fact, nationally, roughly 1 in 6 contracts fall through at some point.
In competitive areas like Nashville and Mt. Juliet, having a backup position can be a smart move.
What Is a Backup Offer?
A backup offer is exactly what it sounds like.
You submit a full offer with terms and pricing just like any other contract — but it only becomes active if the current contract is terminated.
If that happens, you automatically move into first position without competing again.
For buyers relocating to Middle Tennessee, this strategy can be especially helpful if you’ve fallen in love with a specific home or neighborhood.
How Long Is a Home Under Contract in Nashville?
Typically 30–45 days.
Cash deals can close in 10–15 days.
Financed deals usually take 30 + days.
During this time:
- Earnest money is deposited
- Inspection period happens
- Appraisal is ordered
- Loan approval is finalized
- Final walkthrough takes place
- Closing day happens
Only after closing does the home officially show as Sold.
What Causes Contracts to Fall Through?
In the Nashville market, the most common reasons are:
• Inspection issues (foundation, roof, HVAC)
• Low appraisal
• Financing problems
• Buyer’s home doesn’t sell
That’s why “under contract” does not mean “gone forever.”
Final Thoughts: Don’t Panic
If you’re moving to Nashville or buying in Mt. Juliet and see a home listed as under contract, don’t automatically cross it off your list.
Talk to your agent.
Explore the backup offer option.
Understand where things stand in the contingency timeline.
The Middle Tennessee market moves quickly — but smart strategy matters more than speed.
If you have questions about a specific listing or want help navigating the contract process here locally, feel free to reach out. I’m happy to walk you through it.
