Buying or selling a home is one of most people’s biggest financial decisions. The process is often detailed, complex, and filled with industry-specific jargon that can confuse first-time buyers or even experienced sellers. One term that usually raises questions is “Under Offer.”
If you’ve ever scrolled through property listings or spoken to an estate agent, you’ve likely come across this status. But what does “Under Offer” mean on a house sale, and how does it affect buyers and sellers? This comprehensive guide will break the concept down, explore its implications, and give you actionable tips to navigate this phase confidently.
What Does “Under Offer” Mean on a House Sale?
Understanding the Definition of “Under Offer”
In real estate, the term “Under Offer” indicates that a seller has accepted an offer on their property, but the sale is not yet finalized. This status marks the beginning of a conditional agreement, where both parties work through specific terms and requirements before the deal is legally binding.
For instance, a buyer might need to secure financing, complete a property inspection, or fulfil other conditions in the agreement. The property is temporarily removed from the “For Sale” market but has not yet reached the “Sold” stage.
Differentiate “Under Offer” from Other Terms
It’s easy to confuse “Under Offer” with other real estate terms. Here’s a quick breakdown to help clarify:
TermMeaning
For Sale: The property is available for purchase; no offers have been accepted yet.
Under Offer: An offer has been accepted, but the sale is still conditional.
Sold Subject to Contract (SSTC) The buyer and seller have agreed, but the contract exchange is pending.
Sold The sale is complete, and ownership has officially transferred to the buyer.
Why “Under Offer” Matters for Buyers and Sellers
For buyers, seeing “Under Offer” means the property you’re interested in may no longer be available, though there’s still a slight chance the deal could fall through. On the other hand, sellers can use this status as a negotiation tool or gauge additional interest in their property.
The Process Behind a Property Being “Under Offer”
How an Offer is Made and Accepted
The process begins when a buyer submits an offer. This could be at the asking price or below it. Once the seller agrees to the offer, the property is marked as “Under Offer.” However, this agreement is often subject to conditions such as:
- Mortgage approval – The buyer must secure financing for the purchase.
- Property inspections – A home survey or inspection may reveal issues that need addressing.
- Legal checks – Conveyancing solicitors ensure all legal aspects of the property are in order.
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Role of Estate Agents
Estate agents play a pivotal role during this phase. They communicate between the buyer and seller, ensuring all requirements are met to move the process forward. They also update the property’s status in listings, marking it as “Under Offer.”
Possible Outcomes During the “Under Offer” Phase
The “Under Offer” stage can result in several outcomes:
- Successful Completion: All conditions are met, and the sale proceeds to contract exchange.
- Deal Falls Through: The buyer might back out due to financing issues or failed inspections.
- Renegotiation: The buyer may request a price reduction if significant issues arise during inspection.
What “Under Offer” Means for Buyers
What Buyers Should Expect
When a property is “Under Offer,” it’s essential for buyers to understand that this phase is not a guarantee of sale completion. The process is still conditional, and there are risks involved, such as:
- Gazumping: Another buyer could swoop in with a higher offer.
- Delays: Financing or legal checks could take longer than expected.
How Buyers Can Protect Themselves
To navigate this phase effectively, buyers should:
- Secure mortgage pre-approval to demonstrate financial readiness.
- Stay proactive by regularly communicating with their solicitor and estate agent.
- Consider a higher offer only if they’re prepared to outbid competitors.
Tips for Buyers
- Don’t get discouraged if a property is marked as “Under Offer.” Deals can fall through, giving you another chance.
- Always have backup options in case your preferred property becomes unavailable.
What “Under Offer” Means for Sellers
Strategic Importance of “Under Offer”
For sellers, marking a property as “Under Offer” signals interest and progress. It may also create a sense of urgency among potential buyers, potentially driving up offers.
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Sellers’ Rights and Obligations
During this phase, sellers are not legally obliged to complete the sale. They can entertain backup offers or withdraw if the buyer fails to meet agreed conditions. However, transparency and fairness are critical to maintaining trust.
How Sellers Can Handle Multiple Offers
If multiple offers come in, sellers can:
- Negotiate higher prices with the original buyer or new prospects.
- Keep backup offers in case the primary deal falls through.
Common Misconceptions About “Under Offer”
Under Offer” Means the Sale is Final
This is not true. A property marked “Under Offer” is not legally sold until contracts are exchanged.
The Property is No Longer Available
Sometimes, sellers might still allow viewings or accept backup offers while “Under Offer.”
Under Offer” and “Sold Subject to Contract” Are the Same
While similar, “Sold Subject to Contract” usually indicates a more advanced stage in the sale process.
Regional Differences in the Use of “Under Offer”
Usage in the UK
In the UK, “Under Offer” is a commonly used term to indicate interest but not a legally binding agreement.
Usage in the US
The US often uses terms like “Pending” or “Contingent,” which carry slightly different implications.
Usage in Australia
In Australia, “Under Offer” often indicates that conditions such as inspections or financing are still being finalized.
How to Respond If You See a Property Marked “Under Offer”
Buyers: Should You Still Make an Offer?
Yes, but proceed cautiously. Contact the estate agent to express your interest and inquire about the status of the current offer.
Sellers: Managing Interest During This Phase
Sellers should communicate clearly with all interested parties and consider backup offers to ensure a smooth sale process.
Frequently Asked Questions (FAQs)
- What does “Under Offer” mean in simple terms?
- It means the seller has accepted an offer, but the deal is not yet legally binding.
- Can a property marked “Under Offer” still be sold to someone else?
- Yes, in some cases, the seller can accept backup offers.
- How long does the “Under Offer” stage usually last?
- Depending on conditions like financing and inspections, it typically lasts a few weeks to a couple of months.
- What happens if the buyer’s financing falls through?
- The property may return to the market or be offered to backup buyers.
- Is “Under Offer” the same as “Sold”?
- No, “Under Offer” is an earlier stage in the sale process.
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