What Is the Difference between under Offer and Sold Subject to Contract

When you`re on the market to buy a home, you`ll come across different terminologies that can be confusing. Two of these phrases that often cause confusion are “under offer” and “sold subject to contract.” While they may seem similar, there`s a significant difference between the two that can have a significant impact on your home purchase.

Under Offer

The term “under offer” refers to a situation where a seller has accepted an offer from a buyer, but the contracts have yet to be exchanged. This means that the home is still technically on the market and that other buyers can still make an offer. Until the contracts are exchanged, the deal is not legally binding.

If you`re interested in a property that is under offer, you can still make an offer. In some cases, the seller may accept a higher offer if the contracts have not yet been exchanged. However, in most cases, once a seller has accepted an offer, they are unlikely to consider any further offers.

Sold Subject to Contract

When you see a property marked as “sold subject to contract,” this means that the seller has accepted an offer, and the contracts have been exchanged. This means that the property is no longer on the market, and the sale is legally binding. The sale is subject to certain conditions, such as the buyer securing financing and completing a survey, but the overall deal is legally binding.

Once a property is marked as “sold subject to contract,” it`s highly unlikely that the seller will accept any further offers. If the sale falls through for any reason, such as the buyer being unable to secure financing, the property will go back on the market. Still, until then, it`s no longer available for purchase.

Conclusion

In summary, the difference between “under offer” and “sold subject to contract” is that under offer means a seller has accepted an offer, but the contracts have not been exchanged, while sold subject to contract means that the seller has accepted an offer, and the contracts have been exchanged.

If you`re in the market to buy a home, this is an important distinction to be aware of. If a property is under offer, there`s still a chance that you can make a higher offer and secure the property. However, if a property is sold subject to contract, it`s no longer available for purchase.