What Does 'Under Offer' Mean in Property?

Buying your first home is an exciting, albeit daunting, journey. One term you’ll likely encounter during your search is “under offer.” But what does it mean, and how does it affect your potential purchase?

When a property is listed as “under offer,” it indicates that the seller has received an offer from a prospective buyer and is seriously considering it. However, this doesn’t mean the property sale is guaranteed.

It’s a conditional phase in the buying process. During this time, the seller has not yet formally accepted the offer, typically because certain conditions need to be met first.

These conditions might include the buyer securing a mortgage, the successful completion of a property survey, or other contractual details.

Is the Property Off the Market When Under Offer?

Not necessarily. While some sellers might choose to stop showing the property once an offer is under consideration, others may continue to accept viewings and offers.

This means that even if a property is under offer, there may still be a chance to submit your bid.

However, it’s essential to act swiftly and consult with your estate agent to understand the best approach.

What Should You Do If You’re Interested in a Property That’s Under Offer?

1. Express Your Interest: Let the estate agent know you’re interested in the property. If the current offer falls through for any reason, you’ll be in a good position to negotiate.

2. Prepare Your Offer: Ensure your financial arrangements are in order and present a competitive offer. Being prepared can make you a more attractive option should the opportunity arise

3. Stay Updated: Keep in touch with the estate agent to stay updated on the status of the offer. If it doesn’t progress, you may be able to step in.

Understanding Other Mortgage Related Terms:

1. Chain-Free: This term refers to a property that does not depend on the seller buying a new home. Buying a chain-free property can often lead to a smoother and quicker transaction since there are fewer parties and potential complications involved.

2. Gazumping: This occurs when a seller accepts an offer from one potential buyer but then accepts a higher offer from another buyer later on. While not illegal in many places, gazumping can be frustrating and costly for the original buyer who might have already incurred expenses like survey costs or legal fees.

3. Gazundering: The opposite of gazumping, gazundering happens when a buyer lowers their offer just before the sale is finalized, often leveraging the seller’s need to sell quickly. This can put the seller in a difficult position, potentially forcing them to accept a lower price.