What Does It Mean When a House Is Under Offer

What Does It Mean When a House Is Under Offer

When browsing property listings or visiting estate agents in the UK, you may come across homes marked as "under offer." It is a term that causes confusion for many prospective buyers, especially those new to the housing market. It can sound final, yet in reality, it represents just one stage in a much longer process. Understanding what "under offer" truly means can help you gauge whether a property is still available and what your chances are if you wish to make an offer of your own.

The term "under offer" signifies that a buyer has made an offer on the property and the seller has verbally accepted it. However, it does not mean the sale is legally binding or complete. At this point, the buyer and seller have reached an informal agreement, but contracts have not been exchanged and the deal can still fall through. Until that legal step is taken, both parties remain free to walk away for various reasons, and the seller may even accept a higher offer from another party.

The Significance of a Property Being Under Offer

A house that is under offer is still technically on the market. The phrase is a signal that negotiations have progressed but are not yet finalised. Once the seller accepts the buyer's offer, the next steps typically include arranging surveys, securing a mortgage, carrying out legal checks and drafting contracts. These processes can take weeks and sometimes even months. During that time, the sale is still at risk of collapsing due to issues with finance, legal complications or changes of heart.

For buyers, seeing that a property is under offer does not necessarily mean you have missed your chance. In some cases, sellers continue to allow viewings and may even accept backup offers. This is more likely to happen if the seller is unsure about the buyer’s financial position or if the offer was below the asking price. Some estate agents mark properties as under offer but encourage further interest in case the current deal does not progress smoothly.

From the seller’s perspective, accepting an offer does not take the property off the market automatically. It is up to them and their agent whether to continue marketing the property or pause activity while the sale is processed. If you are interested in a property that is under offer, it is always worth asking the agent about its current status and whether they are open to further offers.

Under Offer Versus Sold Subject to Contract

Another term that often causes confusion is "sold subject to contract," sometimes abbreviated as SSTC. While similar to "under offer," SSTC usually indicates that the sale has progressed slightly further. This means that the offer has been accepted and both parties are now moving through the legal and financial processes. It suggests a stronger commitment than "under offer," but still does not represent a completed sale.

In both cases, the property remains unsold until contracts are formally exchanged. Only at the point of exchange do the buyer and seller become legally bound to complete the transaction. Before that moment, there is room for change, negotiation or even withdrawal. This can be frustrating, particularly for buyers who think a verbal agreement provides certainty, but it is a normal part of the UK property system.

The gap between acceptance and exchange is also where gazumping can occur. This is when a seller accepts a higher offer from a new buyer even after agreeing to a previous offer. Although legal, gazumping is widely criticised and can be a source of disappointment for buyers who thought they had secured a home. Being aware of the possibility helps you to manage expectations and move quickly to exchange contracts.

What Should Buyers Do if a Property Is Under Offer

If you find a home you love that is marked as under offer, do not assume it is entirely off limits. Speak to the estate agent and express your interest. Ask if the current offer is strong, whether the buyer is in a good position and whether the seller is still accepting viewings. In some cases, especially if the offer is fragile or slow moving, the seller may consider other potential buyers.

If you do decide to submit your own offer, make sure you are in a strong position. Having a mortgage agreement in principle, proof of funds and a solicitor lined up can all work in your favour. Sellers are more likely to take a new offer seriously if it comes from someone who is ready to proceed quickly and with minimal complications.

On the other hand, if your offer is accepted and the property goes under offer to you, be aware that the seller may still be approached by other interested parties. Moving swiftly with surveys, mortgage paperwork and legal preparation can help secure the sale and reduce the risk of being gazumped.

Legal Aspects and Timeframes

In the UK, the sale of a property only becomes legally binding at the point of exchange. Before that, any verbal agreements or informal commitments are not enforceable in law. This applies to both the buyer and the seller. The time between an offer being accepted and exchange of contracts can vary widely. Some sales go through within a month, while others may take several months due to delays in financing, searches or surveys.

If you are the buyer and your offer has been accepted, stay in regular contact with your solicitor, your mortgage provider and the estate agent. Prompt responses and organisation can help keep the process moving and demonstrate your commitment to completing the purchase.

If you are the seller, once you accept an offer, it is wise to instruct your solicitor straight away and begin gathering the necessary documentation. The quicker you can respond to enquiries and provide the required paperwork, the less chance there is of the sale stalling.