What Does Under Offer Mean?
Under offer is estate agent jargon that often confuses buyer and sellers. It’s understandable, the property world is full of terms that aren’t part of day to day vocabulary.
In simple terms, under offer is a marketing term that refers to a stage in the selling process. As you may have guessed, it involves a prospective buyer putting an offer on the table. However, it’s not as straightforward as you may think and you will likely have questions. Below we uncover what under offer means, as well as answering queries such as: are under offer and SSTC the same? How long does a house stay under offer? Can I view a property under offer?
Under offer meaning
You’ve probably seen a for sale sign or listing online where a property was marked as under offer. This means that a potential buyer has made a reasonable offer on the property and the buyer is now considering it. A seller may want to consider a serious offer whilst assessing the buying position of the buyer. Marking a property as under offer means the seller can have ample time to review an offer whilst also keeping the door open for other potential buyers.
Sometimes estate agents mark a property as under offer to make it more desirable. It could encourage those who were unsure about making an offer to put one on the table, or encourage more interest in general from new parties. This can all work in a sellers advantage and help increase the price.
However, there are times where a property is marked under offer because a seller is simply making a decision on an offer/s.
Under offer vs Sold STC
Properties for sale may be listed as under offer or sold STC. These terms can be confusing and many people get them muddled. However, there is a difference between the two.
As we have covered above, under offer is when a buyer has put forward an offer to a seller. The seller is now considering that offer. They may decline, accept, or negotiate.
Sold STC stands for Sold Subject to Contract. It may also be abbreviated to SSTC. This is essentially the next stage on from under offer. It means that the buyer has accepted an offer and the conveyancing process has begun. The property has not sold as contracts have not been exchanged. However, should no issues be highlighted by the conveyancer, the property will move on to exchange and completion.
How long does a house stay under offer
There is no set timeframe that a house can remain under offer. A buyer can choose to accept or decline within a matter of hours, or they may want to consider for a period of time. It is normal for a property to remain under offer as long as both the buyer and seller are working through the process.
If an offer is declined the property is technically no longer under offer. However, that same buyer may wish to put another offer on the table, meaning the property is under offer again.
Property sales can move very quickly or very slowly and there is no set maximum or minimum period for how long a house will remain under offer.
How long from under offer to sold
If an offer is accepted the average time from under offer to completion is 12 to 16 weeks according to the HOA. However, other sources state everything from 6 weeks to 21 weeks.
As with anything in property the time it takes from a property going under offer to a sale completing varies. Typical delays are often caused by:
- Mortgage difficulties
- Chain breaks – such as the buyer not selling their own property
- Gazumping – when a high offer is put forward
- Negotiations – discussions on price
- Issues during conveyancing
- Gazundering – when a buyer pulls out last minute
Can I view a property under offer?
There is no legal reason to stop further viewings on a property that is under offer. Most estate agents will cease viewings if an offer has been put on the table that they are sure the seller will accept. Typically this is if the offer is the full asking price, or if a reasonable offer has been made and property has been on the market for a while.
However, this is not to be said that estate agents won’t set up further viewings whilst a seller is considering an offer. They may be hoping they can attract a competing buyer that will gazump the offer under consideration. This may cause a bidding war or cause the original offer to declined and that prospective buyer to miss out. Part of estate agent’s job is to achieve the highest value for the seller so this is not uncommon.
Does under offer mean sold?
Under offer does not mean the property has sold. It means that a buyer has put forward an offer to the seller and they are in the process of considering it. They will either decline, accept, or negotiate.
How can Gaffsy help?
We understand that wanting to sell your property can be stressful when you are having to consider multiple unrealistic offers. If you want to sell your house fast and avoid the open market contact us today.
We are a cash house buyer, meaning we have the funds available to buy your home from you directly. Not only does this mean you’ll secure a sale in a timeframe that suits you, but you’ll also be in a fantastic position if you wish to buy as you’ll have the cash from the sale of your home to us – a position that a number of sellers will find very attractive.
If you’d like to get the ball rolling why not get a free cash offer online today?