When navigating the property market, you may frequently come across the term “what does under offer mean” on property listings. Whether you’re a buyer eager to secure your dream home or a seller looking to close a deal, understanding this term is crucial.
This guide will break down what “under offer” means, how it affects buyers and sellers, and what steps you should take when dealing with properties under this status.
Contents [hide]
- 1 What Does Under Offer Mean?
- 2 Understanding the “Under Offer” Status in Real Estate
- 3 What Does Under Offer Mean for Buyers?
- 4 What Does Under Offer Mean for Sellers?
- 5 Common Reasons Why Properties “Under Offer” Fall Through
- 6 How to Speed Up the “Under Offer” Process
- 7 FAQs About “What Does Under Offer Mean?”
- 7.1 Can I view a property that is under offer?
- 7.2 Is “under offer” legally binding?
- 7.3 How long does a property stay under offer?
- 7.4 Can a seller withdraw from an under-offer agreement?
- 7.5 Can a buyer back out after making an offer?
- 7.6 What happens if a property under offer goes back on the market?
- 7.7 Should I offer above the asking price for an under-offer property?
- 7.8 What is gazumping and gazundering?
- 8 Conclusion
What Does Under Offer Mean?
In real estate, “under offer” refers to a property where a seller has accepted an offer from a potential buyer, but the sale has not yet been finalized. This means that while an agreement is in place, the deal could still fall through due to various reasons, such as:
- The buyer withdrawing their offer.
- Issues arising during property surveys or inspections.
- Mortgage or financing complications.
- Contract negotiations breaking down.
Unlike “sold subject to contract” (SSTC), “under offer” is generally considered a preliminary stage in the home-buying process.
Understanding the “Under Offer” Status in Real Estate
How Common Is the “Under Offer” Status?
The “under offer” phase is a standard part of the property-buying process. In competitive real estate markets, properties can go under offer within days of being listed. However, just because a property is under offer does not guarantee the sale will be completed.
Difference Between “Under Offer,” “Sold Subject to Contract,” and “Exchanged Contracts”
Many buyers and sellers confuse these terms. Here’s how they differ:
| Term | Meaning |
|---|---|
| Under Offer | The seller has accepted an offer, but the property is still technically available. |
| SSTC (Sold Subject to Contract) | A more secure stage where both parties have agreed, but contracts are yet to be exchanged. |
| Exchanged Contracts | A legally binding stage where both parties have signed contracts, making the sale almost certain. |
What Does Under Offer Mean for Buyers?
Can You Still Make an Offer on an “Under Offer” Property?
Yes, in many cases, you can still submit an offer on a property that is “under offer.” However, the seller may prioritize the first accepted offer unless your offer is significantly better.
Should You Continue Your Property Search?
Since a deal isn’t legally binding at this stage, it’s wise to continue looking for other properties in case the sale falls through.
What Are Your Next Steps as a Buyer?
- Express Your Interest: Inform the estate agent that you’re interested, in case the current offer falls through.
- Consider Making a Higher Offer: If you’re serious about the property, you could place a more competitive offer.
- Stay Updated: Maintain communication with the agent to stay informed about any changes.
How to Increase Your Chances of Buying an “Under Offer” Property
- Get Mortgage Pre-Approval: Sellers prefer financially prepared buyers.
- Work with an Experienced Agent: A good estate agent can help you position your offer favorably.
- Be Flexible: If the seller has specific conditions, being accommodating can increase your chances.
What Does Under Offer Mean for Sellers?
Can You Accept Another Offer?
Yes, as a seller, you are not legally bound to one buyer until contracts are exchanged. This means you can consider higher offers, a practice known as gazumping (though it’s often frowned upon).
How to Avoid Deal Breakdowns?
To prevent complications:
- Ensure Buyer’s Financial Readiness: Confirm that the buyer has mortgage pre-approval.
- Move the Process Along Quickly: Work closely with solicitors to speed up the sale.
- Consider Backup Offers: Keep a list of interested buyers in case the first offer falls through.
What If a Buyer Pulls Out?
If a buyer withdraws their offer, you can relist the property, negotiate with backup buyers, or review any concerns that caused the deal to collapse.
How to Handle Multiple Offers?
- Assess Buyer Reliability: Choose the buyer who is least likely to back out.
- Communicate Clearly: Keep all parties informed to avoid confusion.
- Negotiate Smartly: If multiple buyers are interested, negotiate for the best price and terms.
Common Reasons Why Properties “Under Offer” Fall Through
- Failed Mortgage Applications – If the buyer’s mortgage approval is declined, they may need to back out.
- Poor Survey Results – Structural issues or defects may discourage buyers from proceeding.
- Gazundering – Buyers lowering their offer at the last minute.
- Slow Progression – Legal or paperwork delays can cause frustration and deal breakdowns.
- Change of Circumstances – Buyers may withdraw due to personal reasons like job loss or relocation.
How to Speed Up the “Under Offer” Process
For Buyers:
- Get mortgage pre-approval.
- Instruct solicitors early.
- Arrange surveys promptly.
- Respond quickly to legal inquiries.
For Sellers:
- Have all documents ready.
- Choose a proactive solicitor.
- Set realistic timelines.
- Be transparent about property conditions.
FAQs About “What Does Under Offer Mean?”
Can I view a property that is under offer?
In most cases, estate agents will still allow viewings, but it depends on the seller’s preference.
Is “under offer” legally binding?
No, a property being under offer does not legally bind either party until contracts are exchanged.
How long does a property stay under offer?
It varies but typically lasts between 2 to 6 weeks, depending on the buyer’s mortgage and legal processes.
Can a seller withdraw from an under-offer agreement?
Yes, until contracts are exchanged, the seller can withdraw or accept another offer.
Can a buyer back out after making an offer?
Yes, a buyer can withdraw without penalties unless they have signed a binding contract.
What happens if a property under offer goes back on the market?
This usually means the initial sale fell through, giving other buyers another opportunity to make an offer.
Should I offer above the asking price for an under-offer property?
It depends on the market. If demand is high, offering above the asking price may improve your chances.
What is gazumping and gazundering?
- Gazumping: When a seller accepts a higher offer after already accepting another one.
- Gazundering: When a buyer reduces their offer just before contracts are exchanged.
Conclusion
Understanding what does under offer mean is essential for both buyers and sellers in the property market. While it signifies progress in a real estate transaction, it is not a guaranteed sale. Buyers should remain vigilant and prepared, while sellers should manage their risks effectively.
If you’re dealing with a property under offer, stay proactive, communicate with agents, and ensure you have a backup plan. By following these steps, you can navigate the home-buying or selling process with confidence!
Ethan Cole is a versatile writer at hsnime.co.uk, offering fresh perspectives and engaging content across various topics. With a passion for creativity and knowledge, Ethan aims to provide insightful articles that resonate with a diverse audience.
