What does 'sale agreed' mean when selling a house?
In the realm of real estate, 'sale agreed' holds a significant meaning. Let's find out what this means when selling a house and its implications in the property transaction process.
What does 'sale agreed' mean?
'Sale agreed' is a term used in the real estate industry to indicate that the seller has accepted an offer from a potential buyer, and both parties have agreed on the basic terms of the sale.
At this stage, the property is considered provisionally sold, pending the completion of certain conditions and legal processes.
Acceptance of offer
When a seller receives an offer from a potential buyer, they have the option to accept, reject, or negotiate the offer. If the seller agrees to the terms proposed by the buyer, they will mark the property as "Sale Agreed."
Subject to contract
Upon accepting the offer, the property status changes to "Sale Agreed, subject to contract." This means that the sale is not yet legally binding, and certain conditions must be met before the transaction can proceed to completion.
Legal and financial processes
The 'sale agreed' status triggers the conveyancing process. Conveyancing involves a series of legal and administrative steps to ensure the smooth transfer of ownership from the seller to the buyer. During this period, various checks and searches are conducted to verify the property's ownership and address any potential issues.
Surveys and inspections
The buyer may arrange for property surveys and inspections during the 'sale agreed' stage. These assessments aim to identify any hidden defects or structural problems that could impact the sale or influence the purchase price.
Timeframe
The time it takes for the property to move from 'sale agreed' to "Sold" can vary. On average, it might take several weeks to a few months, depending on the complexity of the transaction, the efficiency of the conveyancing process, and any unforeseen delays.
Gazumping and gazundering
During the 'sale agreed' phase, there is a risk of gazumping or gazundering. Gazumping occurs when a seller accepts a higher offer from a different buyer, leaving the original buyer without a deal. Gazundering, on the other hand, happens when a buyer lowers their offer just before the completion date, putting pressure on the seller to accept the reduced price.
Possibility of a back-up offer
While the property is ‘sale agreed’, sellers may still consider back-up offers. A back-up offer is a secondary offer from another buyer in case the primary deal falls through.
The importance of 'sale agreed'
The 'sale agreed' status holds significant importance for both sellers and buyers. For sellers, it represents progress in the selling process, as a potential buyer has shown serious interest in the property. For buyers, it indicates that their offer has been accepted, and they can proceed with the necessary steps to secure the property.
However, it is crucial to note that until the completion of all legal processes and the exchange of contracts, the sale is not legally binding. Both parties should be aware of the risks and obligations during the 'sale agreed' phase.
In conclusion, 'sale agreed' is a significant milestone in the property transaction process. It indicates that the seller has accepted a buyer's offer, and the conveyancing process has commenced.
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