If you’re new to the world of real estate, you’ve likely come across the term “under offer” and wondered what it actually means. Don’t worry; you’re not alone! Understanding real estate jargon can feel like learning a new language. In this blog post, we’ll break down what “under offer” means, how it impacts buyers and sellers, and what you should do if you’re dealing with a property that’s “under offer.”
Let’s dive in!
What Does “Under Offer” Mean?
In real estate, “under offer” simply means that a buyer has made an offer on a property, and the seller has agreed to consider it. However, it’s not a done deal yet! The sale is not legally binding until contracts are exchanged.
Think of it like a handshake — it’s a good sign, but the paperwork isn’t signed just yet. During this stage, the buyer might be arranging financing, conducting surveys, or working on legal checks to move the process forward.
Why Is a Property Marked “Under Offer”?
When a property is labeled “under offer,” it signals that the seller has accepted an offer but hasn’t finalized the deal. Here’s why this happens:
- Transparency: It tells other potential buyers the property is likely unavailable.
- Commitment: It shows the buyer and seller are serious about moving forward.
- Time for Due Diligence: The buyer needs time to complete tasks like inspections or securing a mortgage.
Does “Under Offer” Mean the Property Is Off the Market?
Not necessarily! While some sellers may stop accepting further offers once a property is “under offer,” others keep the door open for backup offers. This is especially true in competitive markets where deals sometimes fall through.
So, if you’ve fallen in love with a home that’s “under offer,” don’t lose hope — it could still become available.
What Should You Do if You’re Interested in an “Under Offer” Property?
If a property you love is “under offer,” here’s what you can do:
- Contact the Agent: Let them know you’re interested. If the current deal falls through, you could be next in line.
- Prepare Your Finances: Ensure you have your mortgage pre-approved so you’re ready to act quickly.
- Be Patient: Sometimes deals fall apart due to financing issues or unfavorable surveys. Stay alert!
What Happens Next for Buyers and Sellers?
For Buyers:
- Next Steps: Once your offer is accepted, you’ll move on to the property checks, finalize your financing, and eventually exchange contracts.
- Keep Communicating: Regular updates with the seller’s agent can ensure a smooth process.
For Sellers:
- Stay Open-Minded: If the current offer falls through, you may have to re-list the property or consider backup offers.
- Be Ready to Negotiate: Sometimes buyers come back with revised offers after inspections or surveys.
Conclusion
In real estate, “under offer” is a temporary stage that shows progress but doesn’t seal the deal. Whether you’re a buyer or a seller, understanding this term can help you navigate the property market with confidence. Remember, just because a property is “under offer” doesn’t mean it’s off-limits, so stay proactive and communicate with your agent.
FAQs
1. Can I make an offer on a property that’s “under offer”?
Yes, you can! While it’s up to the seller whether they’ll entertain other offers, many do in case the current deal falls through.
2. How long does a property stay “under offer”?
This varies, but it typically lasts a few weeks to a few months, depending on how quickly the buyer can complete their checks and financing.
3. What’s the difference between “under offer” and “sold subject to contract”?
“Under offer” means an offer is being considered, while “sold subject to contract” indicates that the offer has been accepted, but the deal isn’t legally binding yet.
4. Why do deals fall through when a property is “under offer”?
Common reasons include financing issues, unfavorable survey results, or a change of heart by the buyer or seller.
5. Is “under offer” used in all countries?
Not always. Some countries use similar terms like “pending” or “in escrow,” depending on local real estate practices.