The process of buying a house in 2024 can be a difficult one – there are so many tasks and processes to familiarise yourself with that it can be difficult to keep track of everything.
One extremely common question we are asked as mortgage brokers is: “What does under offer mean?”… and the answer is fairly simple. In this blog post, we are going to be discussing this as well as some of the most pressing questions surrounding the subject.
What Does ‘Under Offer’ Mean in Real Estate?
The typical assumption of what ‘under offer’ means is that a house is no longer on the market since an acceptable offer has come in – however, this is not entirely accurate.
Under offer simply means that the seller has received an intriguing offer that they are considering. During this period, the seller will likely still be open to other offers if they are good enough.
What is the Difference Between ‘Under Offer’ and ‘Sold STC’?
People often get confused between a house being listed as ‘under offer’ and ‘Sold STC’. While these two things may seem similar on the surface, they are actually completely different things.
While both mean an offer has been put forward, the seller has not done anything with it while it is ‘under offer’. Sold Subject to Contract (SSTC) is the stage after this where an offer has been accepted but the sale is not legally binding yet.
All offers put in on a house will be passed on to the seller by the estate agent, meaning that offers can still be made by others during both stages. However, this is far less likely to be accepted in the SSTC stage.
How Long Will a Property Stay Under Offer?
There is not a specific time frame for a house to stay ‘under offer’ for, so this answer can be fairly vague. This will almost entirely depend on the decision-making of the seller and how efficiently they can progress towards a sale.
However, it is important to note that properties that are listed as ‘under offer’ do not typically stay so for very long, it is simply a waiting stage before an offer is accepted.
If you are looking to buy a house that is under offer, you will have a very limited window to put forward another offer, so act fast!
General Questions For House Hunting
Now that you understand what ‘under offer’ means, there are plenty of other important pieces of information you should know about when searching for your dream home. Here we have listed some of the most common questions people have when they come to us for help:
When Should I Make an Offer on a House?
The timing for your offer is vital, the sooner you make your offer the better! There is no need to wait around for any specific time, the earlier you put your offer in then the more likely you are to have less competition.
If you are the first offer on a house, and the buyer deems it acceptable, this can lead to the house being listed as ‘under offer’ and can deter other people from wanting to put their offer in.
How Much Should I Offer?
Typically, it is a good rule of thumb to offer slightly lower than the asking price so that if they decline, you can slowly bump up your offer and save yourself some money in the meantime.
While a lower offer is recommended to start with, it is very important to understand how low is too low. The recommended amount is around 5% – 10% less than the asking price.
This is normally a good starting point as it is not low enough to offend the seller and has a good chance of still being accepted. Anything from 10% to 25% would be considered a ‘cheeky offer’, which can be seen as disrespectful without prior knowledge.
Looking to Buy a House? Let Us Help!
Having a mortgage broker to help you buy a house can be incredibly useful. These services grant you insights that you may never have thought about before. At JG Mortgage Services, we have a team of experienced brokers who are happy to help anyone in the housing market.
Mortgages can be stressful, but with our team to help you can leave much of the work with us and we will be happy to relieve your stress for a reasonable price. Please do not hesitate to give us a call today if you wish to enquire about any of our services.
You can get in touch with us at 01244 738422 or you can email info@jg-mortgage.com and we will be happy to answer any questions you have.
Key Takeaways
- ‘Under-offer’ is where a seller has received an adequate offer for a house and is considering whether to accept it.
- SSTC is where the offer has already been accepted but the sale is not yet legally binding.
- There is no fixed timeframe for a property to remain ‘under offer’; it largely depends on the seller’s decisions and the efficiency of all parties involved.
- Make your offer on a house as soon as possible – this will reduce competition if you are early enough!
- Offering around 5% – 10% lower than the asking price is a good rule of thumb
- If you need help, get in touch with JG Mortgage Services today!
