Entering the property market in Australia, whether you’re waving goodbye to your beloved home or stepping closer to your dream property, hinges on understanding crucial milestones. One of the most questions at this point is, how long from under offer to sold?
This period, shrouded in both excitement and anticipation, is often a complex dance of legal, financial, and emotional steps. So, how long does this typically last? Let’s strip away the complexity and give it to you straight.
What Under Offer Means
First things first, “Under Offer” signifies a key moment where a buyer’s offer on your property is accepted but not yet finalized.
It’s an in-between stage, where the initial agreement is in place but subject to various conditions such as finance, inspections, and sometimes even the sale of the buyer’s own home.
- Offer Accepted: The seller agrees to the buyer’s proposal, but it’s not a done deal just yet.
- Contracts Exchanged: Though signed, these contracts are often conditional, hinging on satisfactory inspections and loan approvals.
- Conditional Period: This is when the due diligence happens, involving finance approval, building and pest inspections, and any other conditions outlined in the offer.
From Under Offer to Sold: Understanding the Australian Property Timeline
Transitioning from “Under Offer” to proudly displaying a “Sold” sign isn’t a one-size-fits-all process. Several steps and stages can affect the timeline, which broadly follows this trajectory:
| Stage | Timing | Description |
|---|---|---|
| #1: Cooling-off Period | Varies by state | Typically a few days post-contract signing where the buyer can opt-out. |
| #2: Conditional Phase | 1-4 Weeks | The buyer hustles to meet the conditions—securing finance, completing inspections, etc. |
| #3: Going Unconditional | Varied | Once conditions are satisfied, the sale moves forward unconditionally. |
| #4: Settlement Day | Approx 30-90 Days from Acceptance | The final step where ownership officially changes hands. |
Financing vs Inspections
Several factors can stretch or shrink this timeline, including but not limited to:
- Finance: The speed (or sluggishness) of obtaining loan approval can significantly impact the timeline.
- Inspections: Necessary evils that can uncover issues needing negotiation or resolution, potentially delaying proceedings.
- Conveyancing: The legal transfer of property ownership, with its paperwork and processes, takes time.
- State-specific Legislation: Cooling-off periods and other legal stipulations vary by state, influencing the overall timeline.
Understanding the Process
Understanding that the journey from “Under Offer” to “Sold” usually spans anywhere from 30 to 60 days provides a realistic framework for sellers and buyers alike.
Suggested reading: For a more detailed look at selling your property, consider reading how to sell my house for comprehensive insights.
When an Offer Falls Through
After your property moves to “Under Offer,” the ball is largely in the buyer’s court, particularly during the conditional phase. Here’s where diligence and patience pay off.
Securing Finance
For Buyers:
- Be Prepared: Ensure you have a pre-approval for your home loan before making an offer. This not only strengthens your position but also accelerates the process once your offer is accepted.
- Stay in Touch: Regularly communicate with your lender or mortgage broker to keep abreast of your loan approval status. Promptly provide any additional documentation they might request.
For those curious about the buying side, exploring how long does it take to buy a house can offer valuable insights into what to expect during your property search.
For Sellers:
- Patience is Key: Understand that finance approval can take time. Keep communication open with the buyer through your real estate agent to gauge progress.
Conducting Inspections
Building and Pest Inspections:
- For Buyers: Arrange these inspections as soon as possible. Any issues identified can then be addressed or negotiated with the seller without unduly delaying the process.
- For Sellers: Consider having a pre-sale building and pest inspection. This proactive step can identify (and allow you to rectify) any potential issues before they become obstacles to sale.
Moving from Conditional to Unconditional
Once all conditions are met—finance secured, inspections passed—the sale moves into the “unconditional” phase. This means the sale is going ahead, and it’s only a matter of time before settlement day.
Settlement Day: The Final Step
Settlement day is when ownership officially transfers from the seller to the buyer. It’s the culmination of weeks (or even months) of effort.
For Buyers:
- Final Inspection: Conduct a final walk-through of the property to ensure it’s in the agreed condition.
- Funds Transfer: Ensure your lender and conveyancer have everything in order for the transfer of funds to the seller.
For Sellers:
- Keys and Access: Be ready to hand over keys, alarm codes, and any other necessary access information to the new owners.
Conclusion
The journey from “Under Offer” to “Sold” is multifaceted, involving several steps that require attention to detail and patience from both parties.
Understanding what to expect can make the process less stressful and more efficient, leading to a successful property transfer.
As you embark on this journey, whether you’re buying your dream home or selling a cherished property, remember that each step is a milestone towards a new beginning.
FAQ Section
What is the difference between under offer and sold?
Under offer indicates that a buyer has proposed a purchase price, and the seller is considering it or has accepted it but the sale is not yet finalized.
Sold STC (Sold Subject to Contract) means the seller has accepted the buyer’s offer, and both parties are working through the contractual details, but the transaction has not yet completed.
How long does it take to close after making an offer?
The closing process for buying a house typically spans 30 to 45 days. The time required can vary based on a variety of factors, including the specific circumstances of the buyer and seller, as well as any requirements set forth by the mortgage lender.
Can a seller accept a second offer?
Yes, a seller can consider and accept a new offer until the contract with the initial buyer is fully executed, meaning signed by all parties involved.
This flexibility exists up until the point where both the buyer and the seller have signed the contract, at which stage the seller is generally committed to the agreed terms.
How long does a sale take to go through?
On average, the process from agreeing to a sale to completing the move can take between 8 to 10 weeks.
This timeframe can extend, particularly if either the buyer or seller is part of a property chain, where the purchase is dependent on the sale of another property.
