What Does Sale Agreed Mean?
Estimated reading time 7 minutes
Property purchases and sales are rife with jargon that often makes the entire process much more confusing than it needs to be. You would think that with the topic of our blog, the term is more or less self-explanatory, “sale agreed”. You can’t get much clearer than that. You have made an offer on a property or had an offer made on yours, and an agreement has been made to sell. The process is almost complete. Well, not quite.
Sale agreed doesn’t yet put you in a position to be handing the keys over or stepping through the front door of a new home. Sale agreed means that a sale has been agreed between the buyer and seller, but there is no contractual obligation for it to proceed any further at this stage. The fast house sale isn’t quite there yet.
Is sale agreed the same as under offer?
Both are loosely the same but also quite different. When a property is shown as under offer, it means that an offer has been made on the property but that it is still under consideration. This allows the opportunity for others to make offers if they wish. At this stage, no offer has been accepted.
Sale agreed, on the other hand, means that an offer has been accepted but not yet confirmed or become legally binding.
Is sale agreed the same as sold subject to contract?
These two terms share some similarities and in fact, are more or less, the same. Should a property be seen as sold subject to contract or SSTC, it means an offer has been accepted, and there is just the case of waiting for contracts to be drawn up and signed. It is often that at this stage, the property may be taken off the market, or not listed as prominently.
An offer may still be able to be made on the property, as until the contracts are signed, there is nothing legally binding about the transaction.
Can a seller pull out of sale agreed property
Yes. Whilst a sale is agreed, there is nothing to say that the sale must happen. If the seller no longer wants to sell, feels they could get a better offer, or simply prefers somebody else to sell to, they can, without consequence, walk away. This may be frowned upon by the buyer, but unfortunately, there is not much they can do. Up until the moment the contracts are signed, the seller is open to explore all options available to them.
Could a buyer pull out if a sale is agreed?
A buyer can do the same as the seller and pull out if they feel the deal may not be suitable for them, are no longer able to afford the property or have had a change in circumstances that means the purchase is no longer necessary.
What happens after a sale is agreed?
Once a property sale is agreed between buyer and seller, what is known as a booking deposit is paid, and a memorandum of sale is drawn up. The memorandum of sale is an important document that supports the process of both buying and selling property. It assists both the conveyancers and the estate agents throughout the process. It contains vital information, such as the agreed selling price, the deposit value, Land Registry information, and more.
Whilst not legally binding, it is one of the initial steps to confirming a property sale has been agreed upon before it reaches the contract stage.
Even at this stage, there is still every chance for the transaction to collapse. If it does, the booking deposit can be returned. However, with the property moved to a status of Sold STC, the intent of the buyer is more solidified than it was initially.
Can you make an offer on a sale agreed house?
If you are looking to purchase a new home and think you have found your dream house, only to find a sale has been agreed, all is not lost. You are still able to make an offer if you wish. This can appeal to a seller for two reasons. Firstly, you may be able to move faster than the other interested party, and, secondly, you may be gazundering the other bidders by offering more than they have for the property. You may not be popular doing this, but you may get the home.
How does sale agreed benefit a buyer?
Having the property moved to a status of sale agreed can put a buyer in a strong position. With their offer accepted and just the legalities to work through, the buyer will feel much more confident in finalising the purchase. With less competition from other people looking to buy, the odds become much more favourable that the home will become theirs.
A buyer will also benefit from a much more motivated seller. Knowing that someone is keen to buy the home, the seller will be making sure they work hard to get the deal completed quickly and properly.
How does sale agreed benefit the seller?
There are also benefits for the seller. With an offer already accepted, they can feel much more confident in the deal concluding and also begin, if they haven’t already, working on their next property plan.
With the home now effectively removed from the market, the seller doesn’t have to put any more effort into marketing the property, therefore saving a little cash and reducing the workload.
Finally, just like with the benefits to the buyer, a seller may benefit from the positivity of the buyer. A buyer may be keen to get the purchase completed and ensure that all their responsibilities to buying the property are being completed quickly and efficiently.
Is showing a property as sale agreed risky?
It can be. Seeing a property as “sale agreed” may be encouraging for both parties but if either decides they don’t wish to pursue the transaction, both could find themselves back at the start of their property journey.
A seller could also find themselves missing out on a more lucrative sale. If the market changes significantly, they may end up selling for less than they could have done.
It’s also an uncertain time. Both sides remain aware that the other could still pull out at any time and leave the property plans in tatters.
Perhaps one of the more important risks to consider is the potential for delays. Most people want their property transactions completed quickly and delays through legal issues or problems with the surveys can hinder the progress of the sale. Keeping the property on the market may put it in front of more people who can work through it much faster.
You can avoid the concern of waiting for your property to move beyond the status of “sale agreed” by speaking to the property experts at Bettermove. We pride ourselves on securing you the fast house sale you want, with no fees, no delays and no stress. With our simple, refined and transparent service, you can sell your house in just 30 days. It starts with a free valuation. Then, you can decide how to proceed. You can allow us to operate as cash house buyers and purchase your home directly from you. We can do this in just seven days if it suits. Alternatively, we can put your property in front of a wide range of pre-approved buyers. It may take a little longer for the sale this way but you will get a little more for your property. Why not speak to Bettermove today to discuss your options and see what works best for you?