What does it mean to be "in contract"?

My neighbor's house has been "in contract" forever now. What does that mean. I'm dying to see who the new neighbors are!!!

Re: What does it mean to be "in contract"?

It means they have someone who put an offer on the house and the owners accepted that price. Then then had an inspection, and then they drew up papers with that dollar amount on it and a bunch of legalese and they all signed it.

The next step is closing, but some deals do fall apart between contract and closing.

I assume that's why they leave the sign up with the "In Contract" on it. So prospective buyers know it's not a done deal yet, or maybe so the realty can use it as free advertising. Like, "Look! We're selling this house to someone!"

Re: What does it mean to be "in contract"?

It means it is in the process of being sold. There is a buyer who has legally committed to buy the house. The process can take a few months before you meet your new neighbors.