In real estate, few phrases create more confusion for new agents, and even experienced buyers, than “under offer.”
On the surface, it sounds final. A property is spoken for, a deal is done, and the campaign is effectively over.
But in practice, it is one of the most misunderstood stages in the entire transaction process. “Under offer” signals momentum, not completion. And that distinction changes everything about how agents manage risk, communication, and buyer behaviour.
Because in real estate, nothing is finished until a property has exchanged.
It starts with an agreement … but not an ending
At its core, “under offer” simply means there is agreement between a buyer and a seller – but not yet a completed sale.
As Melissa Chaddock from RE/MAX Hinterland in Maleny explains, the technical reality is straightforward.
“Under offer means that you have an agreement between a seller and a buyer. A contract has been drawn up and agreed,” she says.
But that agreement is only the starting point of a conditional process.
“If there are conditions to be met, such as building and pest, finance, subject to sale… until those conditions are met, the property is not sold.”
This is where many newer agents misread the situation. An accepted offer feels like closure, but in reality it is a holding pattern’ one where everything still depends on external checks, approvals, and timing.
And critically, everyone involved knows the goal is completion, but no one has reached it yet.
The fragile space between acceptance and exchange
That in-between stage – after offer acceptance but before unconditional status or settlement – is where most deals are either secured or lost.
Melissa explains that while there is agreement in place, there is still movement in the deal.
“There is still potentially an option,” she says. “Everyone’s committed to the process by that point, but obviously you hope it’s all going to go through.”
But hope is not certainty.
Finance approvals can fail. Building and pest inspections can uncover issues that trigger renegotiation. Even emotionally, buyers can shift once pressure builds.
This is why experienced agents treat this phase as active, not passive.
It is also where momentum matters most.
Why “under offer” is still on the market
One of the biggest misconceptions among buyers is that “under offer” means a property is off the market entirely. In practice, that is not always the case.
Melissa explains that agencies often continue managing the property carefully through this stage.
“You don’t want to lose momentum,” she says. “We wouldn’t mark it as under contract or under offer in a way that shuts everything down completely, because we still want those conversations with buyers who might be a perfect backup.”
That doesn’t mean open homes continue as normal; in fact, Melissa is firm on that point.
“I wouldn’t be doing open homes. If you’re doing an open home, people are coming with the expectation they can buy it. And you’re just setting yourself up for disappointment and irritated buyers.”
Instead, agents shift to private inspections and controlled engagement with qualified buyers – not to resell the property, but to protect it; because in some cases, deals do fall over before becoming unconditional.
Backup offers and risk management
Where agents show real experience is not in securing the first offer, but in managing what happens if it fails and Melissa says that backup offers are a practical part of that process.
“You can take a backup offer,” she says, “particularly if there’s a hot market with ready buyers. But it depends on the seller and the agent as to whether they want to continue to take those.”
This is not opportunism – it is protection.
If a contract collapses due to finance, inspection results, or cooling-off rights, having a second qualified buyer ready can mean the difference between a quick recovery and starting the campaign again from zero.
But it requires discipline, clarity, and careful communication with every party involved.
How long does “under offer” last?
The duration of this stage is not fixed. It is negotiated into the contract itself and agents typically try to shorten this conditional window as much as possible.
“You’re trying to get that conditional phase to be as short as you can,” says Melissa. “For building and pest, you’d want seven days ideally, but sometimes it might be fourteen. Finance might be similar.”
The longer the conditional period, the longer the deal remains exposed.
Western Australia: a very different system
In Western Australia, the process is structurally different again.
As Demo Foufas from RE/MAX Extreme explains, WA operates under a Torrens title system where contracts are prepared by agents and become legally binding immediately upon acceptance.
“When an offer is accepted by a seller, it becomes a legally binding contract,” he says.
From that point, the property is effectively locked to that buyer, subject only to the conditions in the contract.
Once finance is unconditionally approved, “it’s pretty much a done deal,” he explains. Even building and pest issues do not necessarily stop the transaction – they become matters of rectification rather than cancellation.
This creates a far more defined “under offer” stage than in many eastern states.
However, even in WA, the property often remains marked as “under offer” until settlement, depending on how the agency processes the campaign.
The two business day clause and conditional complexity
There are also exceptions that allow competition to remain active even under offer.
Demo explains one of the more nuanced examples: when a contract is subject to the sale of another property.
In that case, a “two business day clause” can be triggered if a second offer is received.
“If a second offer comes in, it must be cash or finance not subject to sale,” he says. “Then the first buyer is given two business days to decide whether they want to proceed unconditionally.”
If they don’t, the second offer can proceed. It is one of the few mechanisms that keeps competition alive even after an offer has been accepted.
Different states, different meanings
What becomes clear when you compare systems is that “under offer” does not have a single national definition.
In New South Wales and Victoria, it is often pre-exchange and highly conditional. In Queensland and South Australia, it is a signed contract stage with conditions attached. In Western Australia, it is a binding contract from acceptance, but still subject to defined conditions. Tasmania, the ACT, and the Northern Territory each sit somewhere in between, with variations in exchange timing, cooling-off periods, and contract execution.
But despite the legal differences, the operational reality is the same everywhere.
Across all markets, the most important misunderstanding is not necessarily legal – it is behavioural.
“Under offer” creates a sense of closure where none exists.
And as both agents highlight in different ways, that is where mistakes happen. Deals are still vulnerable. Buyers are still active. Conditions are still in motion. And momentum still matters.
Or as Melissa puts it in practical terms, the job is not done just because an offer is accepted.
And as Demo reinforces from the WA perspective, even a binding contract is only as strong as the conditions still attached to it.