Under offer vs. sold STC: what is the difference?

There are several terms in the world of lettings and property that you rarely hear anywhere else. ‘Sold STC’ and ‘Under Offer’ are two such terms, with both referring to different stages of the buying process. Since they reference very similar stages, many people ponder the difference between ‘Under Offer’ vs ‘Sold STC’. 

As experts in the industry with over 15 years of experience, allow us to guide you through the processes of both ‘Under Offer’ and ‘Sold STC’ in this blog. At Jon Simon, we are leading estate agents who offer properties throughout Greater Manchester and Lancashire, including branches in Bacup, Burnley, Radcliffe and Ramsbottom. Contact us now to enquire about the stunning properties we currently have on offer.

What does ‘Under Offer’ mean?

When purchasing a property you have to go through several stages before you’re given the keys. One such stage is the ‘Under Offer’ period. This term simply means that a prospective buyer has made an offer on a property and the seller has accepted their bid. Crucially, as no legal paperwork has been signed, both parties are not yet legally bound to the sale. This means that either party may still abandon the deal and the agreement remains open to being gazumped by outside parties.  

Although the longevity of this stage will vary from one purchase to another, often the process takes an average of 11 weeks. Still very much in the selling process, in the ‘Under Offer’ stage, the seller may have not made a final decision and you should not assume that the property is now ‘yours’. Until the offer has been resolutely accepted and your bid has been moved to the ‘Sold STC’ stage, there is still potential for the deal to fall through. 

What does ‘Sold STC’ mean?

‘Sold STC’ is the next stage of the buying process, following immediately after ‘Under Offer’. Meaning ‘Sold Subject to Contract’, at this stage a verbal agreement has been reached between the buyer and the seller. While the offer has been accepted, until funds have been exchanged and the sale is legally bound with paperwork, the deal remains incomplete and ‘subject to contract’. 

The ‘Sold STC’ stage is a promising one to be in for both buyers and sellers, but since the stage does not mean that a deal is signed and confirmed, it comes with its risks. Gazumping can still occur at this stage, disrupting the deal, and insufficient survey results may lead to the buyer withdrawing their offer. 

So, what’s the difference between ‘Sold STC’ and ‘Under Offer’? 

Considering their similar space in the process of purchasing a new home, it’s no surprise that many people confuse the terms ‘Under Offer’ and ‘Sold STC’. Yet, despite this, both terms are quite different, with ‘Under Offer’ referring to the fact that an offer has been made by the hopeful buyer and the seller has accepted the bid. At this stage, it’s common for the buyer to make improved offers to improve their chances of securing the property. 

Meanwhile, ‘Sold STC’ is the next stage from this, with the bid having been accepted. During this stage, work commences between you and your solicitor to confirm your mortgage and begin carrying out the necessary conveyancing searches. If such surveys find that there is significant structural damage or other insufficiencies, the buyer could pull out.   

‘Sold STC’ in Scotland 

The ‘Sold STC’ process is a little different in Scotland, so it’s important to read up on their regulations, no matter whether you’re a buyer or a seller. The key difference is that ‘Sold STC’ is replaced by ‘Sold STCM’, meaning ‘Sold Subject to Conclusion of Missives’. In Scotland, once an offer has been made and is accepted by the seller it is legally binding. 

Despite this, the concluding paperwork that seals the deal can sometimes fall through, with a process moving onto a ‘Sold STCM’ phase if there is an issue with any of the legal filing. If this stage occurs then the property becomes available to other buyers who can now make new offers, potentially outbidding the original individual who was moved into the ‘Sold STCM’ phase. 

Still puzzled about ‘Under Offer’ vs ‘Sold STC’?

Still don’t quite get the difference between ‘Under Offer’ vs ‘Sold STC’? Fear not. Buying a new home can be a complicated and tense process, but with Jon Simon, we take this stress away with straightforward advice and guidance. For a trustworthy estate agent with over 15 years of experience buying and selling homes, we can help you secure your new dream home from one of our Burnley, Bacup, Ramsbottom, or Radcliffe branches. 

No matter if you’re looking for a new home and require some expert assistance or are looking to sell your home and are after an online valuation, at Jon Simon, you’re in safe hands.