When you’re buying or selling a property, you’re likely to come across the term “under offer”. For many, it sparks questions: Does it mean the house is off the market? Is there still a chance to make an offer?
What Does ‘Under Offer’ Mean?
The term “under offer” is commonly used in real estate to indicate that a seller has received an offer on their house property and is considering it. However, it’s essential to understand that this stage is not legally binding. The property is still technically “on the market,” and the deal could fall through for various reasons.
Key Characteristics of ‘Under Offer’
Here are some defining features of the ‘under offer’ status:
- Offer Received: A buyer has submitted an offer, and the seller is reviewing it.
- No Legal Obligation: At this stage, neither the buyer nor the seller is legally bound to proceed with the sale.
- Property Still Listed: The property may remain on the market, and in many cases, sellers continue to allow viewings.
- Uncertainty: Deals can collapse due to financing issues, survey results, or changes in the buyer’s circumstances.
Under Offer vs. Other Property Statuses
To better understand the meaning of ‘under offer‘, let’s compare it with other common property statuses. This is especially helpful for buyers navigating property listings on platforms like Rightmove or Zoopla.
Status Meaning Legally Binding? Can You Offer? Viewings Allowed?
Under Offer received, under negotiation. No Yes (backup) Often yes
Sold STC Offer accepted, subject to contract. Partially Limited Rarely
Under Contract: Contracts exchanged between buyer/seller. Yes No No
Off-Market Sale completed, or property withdrawn. N/A No No
What Makes ‘Under Offer’ Unique?
The key difference with ‘under offer’ is the flexibility it provides. Unlike ‘under contract’ or ‘sold STC’, there’s no legal commitment yet. This means both buyers and sellers have more room to negotiate or explore backup options.
Negotiation Insights During the ‘Under Offer’ Phase
The ‘under offer’ phase is pivotal for both buyers and sellers. It’s a time for negotiation, due diligence, and strategic decision-making. Let’s break down what happens behind the scenes during this stage.
Why Deals Fall Through
Several reasons can cause a deal to collapse during the ‘under offer‘ phase. Here are the most common ones:
- Mortgage Issues: The buyer may fail to secure financing.
- Survey Results: Problems like structural defects or dampness uncovered during surveys can deter buyers.
- Sale Chain Breakdowns: If the buyer is relying on the sale of their own property, delays or collapses in that chain can disrupt the process.
- Change of Heart: Sometimes, buyers or sellers change their minds.
Tips for Sellers: How to Navigate the ‘Under Offer’ Stage
As a seller, the ‘under offer’ stage can be nerve-wracking. Here are some best practices to protect your interests:
- Keep Marketing the Property: Even if an offer has been made, continue showing the property to potential buyers until contracts are exchanged.
- Assess Buyer Financial Stability: Prioritize offers from chain-free buyers or those with a mortgage in principle.
- Communicate Via Your Agent: Keep in close contact with your estate agent to stay informed about the buyer’s progress.
Buyer Tips: How to Secure a Property Under Offer
If you’ve found your dream home, but it’s marked as ‘under offer,’ don’t lose hope. There are still steps you can take to increase your chances of securing the property.
Actionable Steps for Buyers
- Contact the Estate Agent: Immediately reach out to the agent to express your interest and inquire about the property’s status.
- Prepare a Strong Offer: If possible, offer a higher price (5-10% above the asking price) to stand out.
- Obtain Mortgage Pre-Approval: Show that you’re a serious buyer by securing a mortgage in principle.
- Highlight Your Position: If you’re chain-free or a cash buyer, emphasize this to the seller.
- Be Flexible: Offer a completion timeline that matches the seller’s needs.
- Stay Informed: Request regular updates from the agent in case the first deal falls through.
- Consider a Backup Offer: Ask the agent if the seller would be open to keeping your offer as a backup.
Seller Perspectives: Why Mark a Property as ‘Under Offer’?
From a seller’s perspective, marking a property as ‘under offer‘ can be a strategic move. It signals to the market that the property has garnered interest, potentially creating a sense of urgency among other buyers.
Risks for Sellers
While the ‘under offer’ status provides flexibility, it also comes with risks:
- Buyer Pullout: If the buyer withdraws, you’ll need to restart the process.
- Reduced Interest: Some buyers may assume the property is no longer available and move on to other listings.
Best Practices for Sellers
- Work Closely With Your Agent: Ensure all potential buyers are properly vetted to minimize the risk of collapse.
- Consider Multiple Offers: If you receive multiple offers, weigh the pros and cons of each carefully rather than going with the highest bid.
- Keep Communication Open: Regular updates with your agent can help you stay informed and make better decisions.
FAQs
What does under offer mean on Rightmove/Zoopla?
It means a property has received an offer but is still in the negotiation phase.
Can I view a house under offer?
In many cases, yes. Sellers often allow viewings until contracts are exchanged.
What’s the difference between under offer and sold STC?
Under offer’ is less formal, while ‘sold STC’ indicates a higher level of commitment.
