What Does "Under Offer" Mean?
Understanding property statuses and what they mean for buyers looking to make an offer.
Property Status Terms Explained
When searching for property, you'll encounter various status terms. Understanding these can help you identify opportunities and avoid wasting time on unavailable properties.
Common Property Statuses
Here are the key terms you'll encounter:
- For Sale / Active: The property is available and the vendor is accepting offers
- Under Offer: An offer has been accepted but the contract hasn't been signed or is conditional
- Under Contract: Contracts have been exchanged and the sale is proceeding, but not yet settled
- Sold: The sale has settled and ownership has transferred to the buyer
- Off Market: Not publicly listed but may be available for sale privately
- Withdrawn: The property has been removed from sale
What "Under Offer" Really Means
When a property is marked "Under Offer," it typically means the vendor has accepted an offer from a buyer, but the sale isn't guaranteed. The offer may be conditional on finance approval, building inspections, or the buyer exercising cooling-off rights. Until contracts are unconditionally exchanged, the sale can still fall through.
Can You Still Make an Offer?
Yes, in most cases you can still submit an offer on an "Under Offer" property. This is called a "backup offer." If the current deal falls through, the vendor may consider your offer. However, be aware that agents may use backup offers as leverage to pressure the current buyer.
The Sale Process Timeline
Understanding where "Under Offer" fits in the process:
- 1. Property Listed: Available for inspection and offers
- 2. Offer Made: Buyer submits offer to vendor via agent
- 3. Offer Accepted: Vendor agrees to terms (property now "Under Offer")
- 4. Contract Signed: Both parties sign the contract of sale
- 5. Cooling-Off: Buyer may have right to withdraw (if applicable)
- 6. Unconditional Exchange: All conditions satisfied, sale proceeds
- 7. Settlement: Payment made, keys handed over, ownership transfers
Why Sales Fall Through
Understanding why properties return to market can help you spot opportunities:
- Buyer couldn't secure finance approval
- Building or pest inspection revealed major issues
- Buyer exercised cooling-off rights
- Strata report showed concerns for apartments
- Personal circumstances changed (job loss, relationship breakdown)
- Buyer and vendor couldn't agree on repairs or price adjustments
Tips for Buyers
Set up alerts for properties that return to market. These can be great opportunities as the vendor may be motivated to sell quickly after a failed sale. However, investigate why the previous sale fell through to ensure you're not inheriting problems.
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