What Does Under Offer Mean When Buying a House?

Have you found your dream property, only to find that it is listed as ‘under offer’ or ‘sold subject to contract’? The world of mortgages and estate is filled with jargon and both of these terms can be very confusing for first-time buyers.

Does this mean the home is off the market or can you still put in an offer on a property that’s under offer?

In England and Wales, the term under offer simply means that the seller has received a buyer’s offer and is currently in negotiations, however, the sale isn’t yet legally binding. As such, this stage can influence whether viewings are still allowed, how negotiations proceed, and even how quickly the sale moves forward.

In this article, we define exactly what an under offer means in the England and Wales property market, explain the difference between under offer vs sold STC, and explore how this status could influence your property purchase. Let’s jump in.

What Does Under Offer Mean?

A property is considered to be under offer when the seller has accepted a buyer’s offer in principle, but the sale is not legally complete. In practical terms, this means that the house is not yet sold and no contract has been exchanged. As such, the buyer who submitted the proposed offer has no legal claim to the property at this stage. Essentially, ‘under offer’ is a title that signifies that negotiations have progressed but the transaction isn’t final.

In many cases, the seller of a property that is under offer may still consider backup offers. This is in case the first buyer cannot proceed, negotiations break down, or there is a disruption to the contracts being formally signed and legally exchanged.

It’s important to note at this juncture that when a property is marked as under offer, it will often affect how other buyers can engage. Viewings may be restricted or limited, and negotiations typically take a back seat while the focus remains on whether the first sale progresses.

Is an Under Offer the Same as Sold STC?

It’s common to confuse under offer with Sold STC, but the two terms are not identical.

Sold STC, meaning Sold Subject to Contract, refers specifically to a property where an offer has been formally accepted and the legal process is underway. By direct comparison, under offer refers to when a seller has agreed in principle to a buyer’s offer, but no legally binding process has taken place.

So, what does this mean for you?

If you’re searching for a property and find that it is currently under offer, the seller may still be open to backup bids, while negotiations with the first/other buyer can still continue. On the other hand, an STC sale (Subject to Contract) is generally considered to be much further down the line of negotiation, signaling more certainty that the sale will be completed soon.

Understanding these distinctions will help you judge how likely a property is to remain available and how best to approach negotiations. Below, we’ve provided an overview of the key differences for your convenience:

Understanding the differences between under offer vs STC will help guide you with a sense of timing, negotiation opportunities, and overall likelihood of securing the property – whether that means submitting a backup offer or focusing your attention on other homes.

But before you begin your property search and look at making offers, it’s essential to understand your borrowing power. With so many homes on the market, not every property will be within your reach. Knowing exactly what you can borrow allows you to refine your search, focus on realistic options, and move forward with confidence.

At Boon Brokers, our dedicated mortgage advisers will provide you with fee-free mortgage advice. We compare products from a wide range of high-street and specialist lenders, ensuring you secure the mortgage that best matches your needs.

Can You Still Make an Offer on a House That is Under Offer?

Yes, you can still make an offer on a property that is under offer, however, your chances of success may be limited and your offer may be received as a back-up bid. This is because when a property is marked as under offer, the seller has already agreed in principle to a buyer’s offer – the sale just simply is not over the line yet.

While it’s important to note that the property and negotiations will typically be prioritised for the first buyer – as negotiations are in progress – being under offer in real estate doesn’t automatically close the door on other buyers.

In reality, sellers and estate agents may continue to consider backup offers if the current buyer cannot proceed due to any financing issues or changes in circumstances. However, as we’ve noted above, the property will generally be prioritised for the buyer already in place, so your negotiation leverage may be limited.

If you’re considering putting forward an offer on a property that is currently listed as under offer, it’s important to consider the process and expectations carefully. Typically, this will involve communicating through the estate agent, putting forward a strong and realistic bid, and being prepared to wait while the current sale progresses.

Ultimately, your offer is likely to be deprioritised and will usually only be considered if the first buyer withdraws or if their negotiations with the seller fall through.

Is a House Under Offer Legally Binding?

No, a house that is under offer is not legally binding. The title ‘under offer’ only highlights that the seller has agreed in principle to a buyer’s offer. However, until contracts are exchanged, either party has the discretion to change their mind.

In short: a property that is under offer reflects only a buyer’s and seller’s intent (to buy and to sell), rather than a concluded final legal commitment.

This scenario is common in the property market and highlights the importance of securing finance, such as a mortgage in principle. A property listed as under offer is never guaranteed until contracts are signed, meaning preparation is key.

For buyers that are interested in a property that is currently under offer, it is essential to stay in contact with the estate agent and monitor the progress of the sale. Recognising that this stage is not legally binding allows you to make strategic choices, whether that means submitting a backup offer or continuing to explore other homes.

Ultimately, even if a property is marked as under offer, either the buyer or seller can withdraw before contracts are signed.

Can a Mortgage Broker Help If You’re Buying a House Under Offer?

While a mortgage broker won’t be able to directly negotiate the property price or secure the home for you, they can play a crucial role in ensuring you’re fully prepared for any eventuality.

From assessing your borrowing power and arranging a mortgage, to securing a mortgage in principle, a trusted mortgage broker can help you show estate agents that you’re a serious, well-prepared buyer.

Being fully organised and prepared is what will give you an edge over many buyers today, positioning you to act quickly if the current offer falls through or if you need to submit a backup bid. With the right preparation, you can enter the market confidently and maximise your chances of success.

At Boon Brokers, our dedicated mortgage advisers provide personalised, fee-free mortgage advice. With whole-of-market access, we will guide you through the entire mortgage process, from borrowing power and recommend lenders to tailored advice and the submission of your application to meet lender expectations.

Whether you’re looking for your next home or simply want to be prepared, Boon Brokers works with both high-street and specialist lenders to find the mortgage that best suits your needs.

Contact Boon Brokers and speak with a dedicated adviser to receive fee-free, mortgage advice today.