Did you ever wonder what the terms ‘under offer’ and ‘sold STC’ (subject to contract) mean when selling a property or when you see these expressions on property signboards? What are the differences really and what role does your estate agent have in this process?
When a property will go ‘under offer’?
The term ‘under offer’ is used when a seller has accepted an offer but before any legal paperwork or surveys are yet to be completed. When ‘under offer,’ both sides can still make a change and consider other offers.
- The house stays on the market during this period. If any other potential buyers want to view the property or make an offer, then they still can. There is no legal commitment, and nothing is yet set in stone, so things can change! For example, if another, higher offer is received by the seller, they might decide to switch buyers. This is also known as gazumping and while it isn’t illegal, it’s often frowned upon.
- Equally, a buyer might decide to continue browsing the market. Despite being ‘under offer’ and withdrawing their offer if they see a more favourable property elsewhere.
So, as you can see, being under offer isn’t a formal confirmation. It’s merely a reference to a stage from which the buyer and seller move forward from.
An estate agent will change a property status to ‘under offer’. This is to let other buyers know that there’s a good chance the property will be off the market soon. However, until contracts are exchanged, either party can back out without legal consequences.
Sold STC – what does it mean and when it will be used?
Sold Subject to Contract – SSTC – means that the seller has accepted an offer, both buyer and seller have committed to the sale, but the sale isn’t legally binding yet. The house is usually taken off the market, and SSTC indicates a more advanced stage of the transaction process. What sets SSTC apart from ‘under offer’ is that the initial checks like surveys, property valuations, and maybe even mortgage approvals have been booked in or done. Unless there is something wrong pops up in the reports or with buyers’ mortgage, it is highly likely that the sale proceeds through to the exchange of contracts and completion. As a summary:
- A property status will change to SSTC once all the initial checks are in order, including the mortgage and both buyer and seller are happy to move forward.
- It is a stage of greater confidence that the transaction will go through. Although it’s still not 100% certain until contracts are exchanged.
- The aim of reaching this stage is to minimise risks and prepare both sides for the legal commitment, which comes next.
Key differences in ‘under offer vs sold stc’
The primary difference lies in the stage of the transaction. And the level of commitment from both buyer and seller. ‘Under offer’ is more tentative, in the early stages before any surveys or checks. SSTC is a more advanced stage, where both buyer and seller are more committed to seeing the transaction through, pending legal contracts.
Under offer vs sold STC FAQs
Q: Can I make an offer on a new home before my current home is under offer?
A: Yes, you can, but be aware that sellers might not take your offer seriously if you haven’t secured a buyer for your current home.
Q: How long does the process of being ‘under offer’ usually take?
A: The duration varies, but it typically takes a few weeks to move from ‘under offer’ to ‘sold STC’. Depending on the buyer’s situation and any potential issues that arise during the survey or mortgage approval process.
Q: Can a property fall through after being ‘sold STC’?
A: Yes, until contracts are exchanged, either party can withdraw from the sale without penalty. Common reasons include issues uncovered during the survey, mortgage problems, or a change in circumstances.
Q: Should I stop viewing once my property is ‘under offer’?
A: It’s usually best to continue viewings until you have a firm offer and proceed to ‘sold STC’. This keeps your options open in case the initial offer falls through.
An agent’s role in ‘under offer’ vs ‘sold STC’
An estate agent can guide you through the entire process of selling. Ensuring you understand key terms like ‘under offer’ and ‘sold STC’ (Subject to Contract).
They can also help evaluate offers on not just price but also the buyer’s/seller’s position (e.g., whether they are in a chain -if the buyer is also selling or the seller is also buying at the same time, or their financial status).
If a property goes ‘under offer’, then an estate agent can keep the lines of communication open with both the seller and the buyer. To manage expectations and keep the process moving forward. Once an offer is accepted and it progresses to ‘sold STC’, they will coordinate with solicitors, surveyors, and other parties to ensure the sale progresses smoothly.
An estate agent can also provide advice if another offer comes in after the sellers have accepted one. Ensuring the parties understand the implications of changing buyers at this stage.
Throughout the process, an estate agent’s goal is to make selling your house as stress-free as possible while achieving the best outcome for you.
I hope this post is useful to you. Please do let me know if you have anything to add, and I will gladly consider it and add to the article if it helps my readers and don’t forget, if you need further advice/assistance or would like to reach out you can find my contact details below.
Josephine – Your Trusted London Property Partner
Tel: +44 (0) 7491 430055
Email: [email protected]
Josephine Dayan is a member of Laurel Leaf Networking.
