In the world of real estate, terms and jargon can sometimes be confusing, especially for first-time buyers and sellers. One such term is “quietly under offer.”
Quietly under offer means a property has received an offer that the seller has accepted, but it hasn’t been officially sold yet. The sale is happening privately, typically without open inspections or public advertising.
This article will break down the meaning of “quietly under offer” and provide insights into why this approach might be used in the real estate market.
Suggested Reading: Learn more about important real estate terms in Soho’s guide.
Understanding “Quietly Under Offer”
“Quietly under offer” refers to a situation where a property is in the process of being sold, but the details of the offer and negotiations are kept discreet.
This means the property is not actively advertised as being under offer, and only a select few people are aware of the ongoing negotiations.
Why Use “Quietly Under Offer”?
There are several reasons why sellers and agents might opt for a “quietly under offer” approach:
- Discretion and Privacy:
- Sellers may prefer to keep their sale private to avoid public scrutiny or to manage their personal circumstances discreetly.
- High-profile individuals or those in sensitive positions may opt for this method to maintain privacy.
- Market Strategy:
- Keeping negotiations quiet can create a sense of exclusivity and urgency among potential buyers.
- It helps prevent the perception that a property has been on the market for too long, which can negatively impact its desirability and price.
- Avoiding Low Ball Offers:
- By not widely advertising that a property is under offer, sellers can avoid attracting low ball offers from opportunistic buyers who might sense desperation.
How Does It Work?
When a property is “quietly under offer,” the real estate agent will still conduct negotiations and handle the sale process, but with a focus on confidentiality.
Here’s how it typically works:
- Selective Marketing: The property is shown to a select group of serious buyers rather than being widely advertised.
- Negotiation: Offers are made and negotiated privately, often with potential buyers who have been pre-qualified or are known to be genuinely interested.
- Minimal Publicity: The property may still appear on listing sites, but without any mention of being under offer, thus maintaining a low profile.
Pros and Cons
Pros:
- Privacy for Sellers: Keeps personal financial matters out of the public eye.
- Maintains Market Perception: Avoids the stigma of a property appearing stale on the market.
- Serious Buyers Only: Attracts buyers who are genuinely interested and capable of purchasing.
Cons:
- Limited Exposure: Fewer potential buyers may be aware of the property, possibly missing out on higher offers.
- Transparency Issues: May lead to less transparency in the transaction process, causing uncertainty for some buyers.
Do Quietly Under Offer and Sale by Set Date Mean the Same Thing?
No, “Quietly Under Offer” and “Sale by Set Date” do not mean the same thing in Australia.
Sale by Set Date refers to a sales method where interested buyers are given a deadline (usually around 4 weeks) to submit their best offers to the selling agent.
After the deadline, the vendor reviews all offers and can choose to accept one, negotiate further, or put the property back on the market.
On the other hand, Quietly Under Offer, as explained above, typically means that the property has already received an offer from a buyer that the vendor is considering, but it is not officially sold yet.
The property remains on the market to allow other potential buyers to submit competing offers before the sale is finalised.
Practical Case Studies
To illustrate the concept of “quietly under offer,” here are some practical examples:
Case Study 1: The Discreet Seller
A seller in a high-profile job needed to sell their property but wanted to avoid media attention. The agent marketed the property to a select group of buyers without publicizing that it was under offer, ensuring a smooth and private transaction.
Case Study 2: The Strategic Agent
An agent listed a high-value property and received several offers quickly. To maintain the property’s exclusivity and avoid a price drop, the agent negotiated quietly with the most serious buyers, resulting in a higher final sale price.
Now that you know what “quietly under offer” means and how it works, you can make more informed decisions in the real estate market. This approach offers privacy and strategic advantages but also requires careful consideration of its potential drawbacks.
Looking to sell your property? Find real estate agents on Soho.com.au who specialise in your suburb.
FAQs on ‘What Does “Quietly Under Offer” Mean
Can a seller ignore an offer?
Yes, a seller can ignore an offer, particularly in a multiple offer situation or bidding war. The seller might prioritize which offers to consider based on their terms or potential, especially if not legally obligated to respond to every offer.
What is the difference between under offer and sold subject to contract?
The term “under offer” means a buyer has made an offer that the seller has accepted or is considering. “Sold subject to contract” (STC) indicates that the seller has accepted the buyer’s offer, but the sale is pending fulfillment of certain conditions, making it not yet legally binding.
Can a buyer cancel an offer?
A buyer can cancel an offer until both parties agree on all contract terms and sign the purchase agreement. Prior to these final agreements, neither party is legally bound to proceed with the transaction.
