When you’re buying or selling a home in New York or New Jersey, understanding the timeline from “under contract” to closing is crucial for managing expectations and planning your next steps. Most homes typically stay under contract for 30-60 days, though this timeframe can vary significantly based on financing, inspections, and local market conditions.
Understanding how long can a house be under contract helps you plan your timeline and manage expectations during one of life’s biggest transactions.
What “Under Contract” Really Means in NY & NJ
When a house goes “under contract,” it means the seller has accepted a buyer’s offer, but the sale isn’t final yet. Think of it as an engagement period before the wedding—both parties have committed, but several important steps remain before the deal closes.
In New York and New Jersey, this period involves multiple contingencies and deadlines that protect both buyers and sellers. The contract includes specific timeframes for inspections, appraisals, mortgage approval, and other key milestones. During this time, the property is typically removed from active marketing, though some sellers may continue showing it to backup buyers.
For buyers actively searching Staten Island homes for sale, understanding this process helps you know what to expect once your offer gets accepted. The contract period is when most of the “behind-the-scenes” work happens to ensure the transaction can proceed smoothly to closing.
Typical Timeline: 6 Key Milestones
The journey from contract to closing follows a predictable sequence of events, each with its own timeline and requirements:
| Milestone | Typical Timeframe | What Happens |
|---|---|---|
| 1. Offer Accepted | Day 0 | Buyer and seller sign purchase agreement; earnest money due within 24-48 hours |
| 2. Earnest Money Deposit | Days 1-3 | Buyer deposits funds (typically 1-3% of purchase price) into escrow |
| 3. Home Inspection | Days 5-10 | Professional inspection completed; buyer may request repairs or credits |
| 4. Mortgage Application & Appraisal | Days 10-25 | Lender orders appraisal; underwriting process begins |
| 5. Final Underwriting | Days 25-40 | Lender reviews all documentation; issues clear-to-close |
| 6. Final Walkthrough & Closing | Days 45-60 | Property condition verified; documents signed; keys transferred |
According to the Consumer Financial Protection Bureau, buyers have specific rights during this process, including a three-day review period for certain loan documents before closing.
How Long Does It Usually Take?
The national average for homes under contract ranges from 30-60 days, with most conventional financing deals closing around the 45-day mark. However, several factors can significantly impact this timeline:
Cash purchases often close much faster—sometimes in as little as 10-14 days—since they bypass the mortgage approval process entirely. These deals are particularly common in competitive markets or when sellers need to close quickly.
FHA and VA loans typically require 45-60 days due to additional documentation and appraisal requirements. First-time buyer programs may add a few extra days for required counseling sessions.
Complex transactions involving new construction, co-ops, or unique financing can extend the timeline to 90 days or more. Properties requiring significant repairs discovered during inspection may also face delays while negotiations occur.
In the tri-state area, local factors like attorney review periods (common in New Jersey) and co-op board approvals (frequent in New York) can influence these timelines.
Factors That Stretch the Clock
Several common issues can extend the contract period beyond the typical 30-60 day window:
Financing complications top the list of delays. When interest rates fluctuate, income documentation issues arise, or credit problems surface, lenders may need additional time for approval. Getting pre-approved helps, but it doesn’t guarantee smooth sailing through underwriting.
Inspection negotiations can add weeks to the process. If major issues like electrical problems, HVAC concerns, or structural damage emerge, buyers and sellers must negotiate repairs, credits, or price adjustments. For example, properties in established neighborhoods like Oakwood homes for sale might reveal older systems needing attention.
Title complications occasionally surface during the title search. Issues like liens, easements, or ownership disputes require resolution before closing can occur. While title companies work efficiently to resolve these matters, complex issues may need legal intervention.
HOA documentation requirements can slow transactions involving condominiums or planned communities. Associations must provide financial statements, bylaws, and other required documents, which doesn’t always happen quickly.
Appraisal challenges arise when the property doesn’t appraise for the agreed purchase price. This triggers renegotiation or requires buyers to bring additional cash to closing, both of which take time to resolve.
Buyer & Seller Action Plan to Stay on Schedule
Smart preparation keeps transactions moving smoothly toward closing:
For Buyers:
- Order your title work and homeowner’s insurance immediately after going under contract
- Respond to lender requests within 24 hours—delays here ripple through the entire timeline
- Schedule your home inspection within the first week of the contract period
- Lock your interest rate if you haven’t already to avoid rate changes during processing
- Gather all financial documents upfront, including recent pay stubs, tax returns, and bank statements
For Sellers:
- Keep the property in showing condition for the appraisal and potential backup buyers
- Address any known issues proactively to avoid inspection surprises
- Gather all property documents including warranties, HOA information, and utility bills
- Stay flexible with closing dates to accommodate minor timing adjustments
For Both Parties:
- Maintain open communication through your real estate agents
- Build small buffers into your timeline for unexpected delays
- Have backup plans for temporary housing if needed
Need guidance navigating your transaction? Contact Robert DeFalco Realty for experienced support throughout the process.
Under Contract vs. Pending vs. Contingent
These three terms often confuse buyers, but they represent different stages in the sales process:
| Status | Meaning | Buyer Action |
|---|---|---|
| Under Contract | Offer accepted, contingencies remain | Can still make backup offers |
| Pending | All contingencies satisfied, awaiting closing | Generally not accepting offers |
| Contingent | Under contract with specific conditions listed | May accept backup offers depending on contingency type |
“Under contract” means the seller has accepted an offer, but several conditions typically remain unmet. The buyer still needs to complete inspections, secure financing, and satisfy other contract requirements.
“Pending” indicates that all major contingencies have been satisfied, and the parties are proceeding toward closing. While surprises can still occur, pending sales have a high probability of completing successfully.
“Contingent” status often specifies the remaining conditions, such as “contingent on inspection” or “contingent on buyer selling their current home.” These listings may still consider backup offers depending on the nature of the contingency.
FAQ Corner
Can a house be under contract for 90 days? Yes, though it’s less common. Extended contract periods typically occur with new construction, complex financing arrangements, or when significant repairs are needed. Some luxury properties or unique situations may require extended timelines for due diligence.
Can you make an offer on a house that is under contract? Absolutely. Backup offers are common and advisable, especially in competitive markets. About 3-5% of contracts fall through, so being first in line as a backup buyer can pay off. Your agent can help structure a backup offer that protects your interests while giving you a legitimate chance if the primary deal fails.
Why do houses stay under contract so long? Extended contract periods usually stem from financing delays, complex inspection negotiations, title issues, or buyer-specific circumstances like selling their current home. Market conditions, property type, and local regulations also influence timelines.
What happens if buyers back out while under contract? Buyers who back out typically forfeit their earnest money unless they exit due to an unmet contingency. However, if they withdraw for reasons covered by contract contingencies (failed inspection, financing denial, low appraisal), they generally receive their earnest money back.
How can I speed up the closing process? Start with a strong pre-approval letter, respond quickly to all requests, hire experienced professionals, and stay proactive about scheduling inspections and appraisals. Communication and preparation are key to avoiding unnecessary delays.
Conclusion: Plan Smart, Close Successfully
Understanding the 30-60 day reality of most real estate contracts helps you plan effectively whether you’re buying or selling. While delays can occur, being prepared and working with experienced professionals significantly improves your chances of a smooth transaction.
Remember that some factors remain outside your control—like lender processing times or inspection discoveries—but staying organized and responsive keeps your deal moving forward. The contract period might feel long when you’re eager to move, but it serves an important purpose in protecting your interests and ensuring a successful transaction.
Ready to start your home search or thinking about selling? Browse current Bulls Head real estate listings or contact our team to discuss your specific timeline and needs. Every successful closing starts with understanding the process—and now you’re well-equipped for whatever comes next.