What Does Under Offer Mean?

What Does Under Offer Mean?

UO means that Offer Under has been made by a buyer (usually below the asking price) and the seller is indisposed to accepting this. Others agents use it when the owners of properties have accepted an offer, but formalities relating hereto have not yet been accomplished.

Can someone under offer still make an offer on a house?

You can also give your own offer if the property is “under offer”. The prospective buyers and sellers are not legally obliged to proceed with the property sale until all paperwork has been signed and exchanged. Sales fall through for 5 out of 20 properties listed as ‘under offer’ or sold ‘subject to contract’. So, it may be worth asking about making your own offer from the agent.

What does subject to contract mean?

When a property is being sold “subject to contract” (STC), it implies that an agreement was reached between a purchaser and vendor. However, you can contact them and even make your own offers since the selling process is yet complete. Only after both interested parties have signed and exchanged contracts, no further new offers from anyone else can be entertained by the seller.

The expressions ‘sold subject to contract’ and ‘under offer’ can both be used interchangeably in that an interested buyer has made a reasonable offer and the seller has accepted. However, no contracts have been exchanged. The only distinction is that something can still be under consideration even if a reasonable proposal has been submitted by the purchaser.

Normally estate agents will say a property is “sold STC” once an offer has been agreed with the seller, but before they exchange contracts. This term is increasingly being used as a marketing term implying that the estate agent can sell property quickly and efficiently.

This may be an important issue for some people when it comes to under offer versus sold STC. In either of these cases, you should ask the selling estate agent if you want to know whether putting in your own bid is possible or not.

For how long will a house stay under offer?


Typically, houses do not remain under offer for very long. Once the prospective buyer makes an offer on a property and it is accepted, what follows is that all parties involved want these contracts signed as soon as possible. But before signing any contract however, the buyer must fulfill a number of requirements such as agreed offer; mortgage valuation and mortgage in principle; surveys required; searches conducted by the conveyancing counsel; deposit and completion date agreed.

How long from ‘under offer’ to ‘sold’ specifically?

This depends only on the speed of both sides’ lawyers or conveyancing solicitors. However, if you give out all information necessary in time this may expedite things.

How do I stay out of a gazump?

When a buyer outbids you on a property, you are said to get gazumped. This can be very inconvenient, particularly if you’ve already paid for surveys, legal services, a mortgage, etc.

Don’t be a gazumper; get more organized. It is advisable to complete the procedures preceding the contract exchange as soon as feasible. It is important to know who you are dealing with because building a good rapport with them might be beneficial. You can still ask them and their agent to take it off the market, even if they are not legally obligated to.

How long can a property be under offer for?


There is no set maximum or minimum period during which a property can get under offer. The property will remain under offer as long as the two parties keep on working out the contract making and exchanging.

When should I make an offer for the house?

One must buy the house if he or she is serious about buying it. What happens next after making an offer on a property? A proposal will usually involve the following steps:

A new buyer formally offers to purchase a property.

The seller either accepts, declines or counters the offer.

If this happens, then the buyer has to accept the counteroffer and go back to first stage to create another one.

Is there any possible way to put an offer on a house without one on mine?

You can still make an offer but, depending on the market, your offer may not be taken seriously. Don’t even think of making an offer for a house if you haven’t taken up at least one offer on your own property.

An accepted offer for your home will give you more bargaining power while presenting another proposal for buying that dream home.

Can an estate agent disclose other offers?

Estate agents are legally prohibited from telling you any specific amount that other prospective buyers have offered when purchasing a property. However, they may suggest how close to the asking price some of these offers were.

It’s good practice for agents to help clients make the best offers in order to secure their chosen properties.

How do I reserve a new build property?

Different new homes developers have different methods of reserving a new home with them. Nonetheless, what you will probably be doing is paying a reservation fee in order to hold your desired unit.

Is it possible to outbid an accepted offer?

You can actually place a bid higher than the accepted offer and the seller can receive your bid. Thus all offers must be communicated to the vendor by the estate agent.

A house is only taken off-market when contracts have been exchanged on it. If you see a property that you like and it is “under offer” or “sold subject to contract”, you can still make an offer on that property.

Does ‘under offer’ mean a house is sold?

When a property is under offer, it means someone has put in an offer to buy the house. It does not mean that it has been sold, and there are no legal implications in this scenario.

While a home is under contract, you might be able to make an offer, but some real estate brokers would rather let the seller and potential buyer try to reach an agreement before fielding alternative offers.

Is ‘under offer’ the same as ‘sale agreed’?

‘Under Offer’ and ‘Sale Agreed’ signify different stages of purchasing a property. Under Offer for instance indicates that the potential buyer has made an offering price either being considered by or negotiated with the homeowner.

On Sale Agreed however, what happens is both parties agree on price for which transaction proceeds.

Can a deal fall apart for a property under offer?

Therefore, if both the buyer and seller fail to agree or any of them change their mind, it is still possible for the sale not to take place. ‘Under offer’ status does not bind either buyer or seller into continuing with the purchase.

Is an under offer legally binding?

There is no legal duty on either party to proceed with the transaction. Indeed, an offer to buy is never legally binding on either buyer or seller. Hence, they can both withdraw their respective offers without being obliged to provide any reason whatsoever or keep off the market.

Is it possible to receive a penalty for withdrawing from an offer?


In England, Wales and Northern Ireland, it is not an offense to withdraw from an offer by either the seller or the interested buyers. However, this is different in Scotland.

If you are a buyer who pulls out of your offer, the seller could either sue you for damages or agree on some amount of financial compensation. This will usually be equivalent to the cost of selling marketing fees and/or below-market value between first purchase price and the final price accepted by the seller.


Should I offer less as a buyer?


The decision lies entirely in your hands whether or not to offer below the asking price.  It will largely depend on how strong the demand is and what bargaining power you possess.  In such a case, if there are multiple offers, an offer beneath the original bid price will often be rebuffed immediately.

Nevertheless, should you be a cash buyer or any other faster method of purchasing then you may find that the seller is more likely to take you seriously.  In this case, however, you also have to show your might and capability of delivering on the house buying process.


Will there be any changes made in 2024 regarding buying/selling property?


As things stand, there are no major adjustments being worked on that would have bearing on UK property transactions through sale and purchase involving offers in 2023. The whole system is not mandatory under statute law in England and Wales but rather a “broad framework within which parties can shape their own bargains” as per Gov.uk guidance.

Nevertheless, Parliament is currently reviewing this system with many minor modifications suggested that might be possible to implement within next few years. Its main aim is making sure that property transaction speed is reduced while enhancing clarity for all stakeholders involved.

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