Under offer means a potential buyer has made an offer on a property, and the seller is currently considering that offer. It's important to note that an under offer property has not been sold yet, and the transaction is not legally binding. The sale is not yet finalised. The property is still technically on the market, but the person who made the offer is trying to buy it.
Under Offer vs Sold STC
Sold subject to contract (STC) is typically used when referring to property sales and indicates that an offer has been accepted, but the sale is not yet final. The next step in the process is for the parties to begin conveyancing, which is the legal process of transferring property ownership. Once this is complete, the sale will be legally binding.
It is possible to submit an offer on a STC property, but some estate agents may be reluctant to allow offers at this time, as it could derail the earlier transaction.
Making an Offer on a House Already Under Offer
A house under offer means someone has made an offer on the house, but the sale is not yet final. This means that other people can still make offers on the house. If someone makes a new offer that the seller accepts, the original offer is void, and the new offer becomes binding.
In other words, nearly half of all houses put up for sale in 2020 did not sell. This is a significant increase from the previous year when only about a quarter of all sales fell. Many of these houses were listed as under offer or sold STC (subject to contract), which shows that these labels do not necessarily mean that the sale is final.
Gazumping is a practice in which a seller accepts an offer on their home from one buyer, only to have another buyer present a higher offer later on. This can be very frustrating for the original buyer, as they have already invested time and energy into the purchase, only to be outbid at the last minute. Gazumping is common in certain markets, such as the UK, but can happen anywhere. If you are worried about being gazumped, you must have a solid offer and be prepared to move quickly.
How Long Does a House Stay Labelled as Under Offer
If you see a house you like under offer, you should move quickly to make your own offer. If a property is labelled as under offer, the current owners have already accepted an offer from a prospective buyer. However, the transaction isn't final yet; the contracts need to be signed and exchanged. Because both parties are eager to finalise the deal, properties under offer don't usually stay on the market for very long.
The time it takes for a house to sell can vary depending on several factors, but typically it takes around 8-12 weeks from when the property is first put on the market to when the sale is legally finalised. Some things that affect the timeline are how quickly the buyer can complete necessary tasks like getting a property survey or arranging a mortgage and how smoothly the transaction progresses.
When Should You Make an Offer on a House?
When you are interested in making an offer on a property, it is beneficial to be prepared for the following process. Making an offer when you are serious about purchasing will make you a more attractive buyer.
Here's what you need to do:
1. Consider Your Credit Score and Budget
This will give you an idea of what kind of loan you can get and what interest rate you can expect to pay. To calculate your budget, you need to determine your income and expenses. Your income is the money you make from your job, investments, or other sources. Your expenses are the money you spend on rent, food, and transportation. To calculate your budget, you subtract your expenses from your income.
2. Research the Local Housing Market
Look at the prices of comparable homes in the area to get an idea of what you should be paying. Make sure you know everything there is to know about the property and the surrounding area before making an offer.
3. Get Pre-Approved for a Loan
This way, you'll know how much house you can afford and be in a better position to negotiate with sellers. A mortgage in principle is a decision from a lender about how much they would be willing to lend you based on an assessment of your financial situation. This can give you an idea of how much you could borrow to buy a property.
4. Compare Conveyancing Quotes
Once an offer is accepted, you will need to use a solicitor to handle the legal aspects of your purchase. This process is called conveyancing. You can compare conveyancing quotes at Compare Conveyancing Quotes to ensure you get the best deal.
5. Get a Survey
Surveys are carried out by a professional who will visit the property and check it to ensure there are no structural issues that could affect the price or make the property dangerous to live in. You can compare home surveys at Compare Home Surveys to ensure you get the best deal.
Putting in an Offer on a New House Before Selling
If you're interested in buying a new property but haven't sold your current one yet, you can make an offer on the new property contingent on the sale of your current one. However, this may delay the transaction. Another option is to buy and sell houses simultaneously, which would lengthen the property chain greatly and thus delay the process.
Some sellers won't accept an offer from a buyer who needs to sell a property because a longer process could result. Thirteen per cent of failed property sales were due to a break in the chain, while 15 per cent were due to the seller losing patience because of slow progress. If you sell your home first, then present yourself as a buyer without a chain, you'll have a higher chance of being accepted.
If you cannot find a home before selling your current home, it is recommended that you make an offer on a new one, either when you are close to finishing the selling process or after receiving an offer on your current home. This will also help with negotiations when purchasing the new home.
Conclusion
When a house is under offer, the seller has accepted an offer from a prospective buyer. The offer is usually in the form of a contract, which outlines the terms of the sale. Once the contract is signed, the house is considered to be under offer. This means that the buyer is obligated to purchase the property, and the seller is obligated to sell it.
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