Under offer? How to register as a back-up buyer

You’ve found the lot you like on the lot plan, but it’s showing as under offer. It’s a common moment of disappointment, and it’s often premature. Plenty of under-offer lots end up back on the market. Here’s how it works and how to give yourself the best chance.

What under offer actually means

A lot is marked under offer when a buyer has made an offer and the sale is in progress. At this stage the sale isn’t finished. Depending on the contract, there can be conditions that still need to be met, such as finance approval, and the deposit may still need to be paid.

Until those steps are complete and the sale settles, there’s always some chance it won’t go ahead.

Why sales fall through

There are plenty of ordinary reasons a sale doesn’t proceed.

• Finance: if the contract is subject to finance and the lender doesn’t approve the loan in time, the buyer may be able to end the contract.
• Change of circumstances: jobs change, family situations change and plans move on.
• Second thoughts: some buyers make an offer quickly and then reconsider within the terms of the contract.
• Deposit timing: if a deposit isn’t paid when it’s due, the contract terms come into play.

None of this is unusual. It’s simply part of buying and selling property.

How a back-up registration works

Registering as a back-up buyer means you tell Terry you’d like to be next in line for a particular lot. If the current sale doesn’t proceed, Terry contacts you before the lot goes back on the open market.

It costs nothing to register, and it doesn’t commit you to anything. If the lot becomes available, you can decide then whether to go ahead.

How to register

1. Use the enquiry form and choose “Register as back-up buyer”, or call Terry on 0408 554 444.
2. Tell Terry exactly which lot or lots you’re interested in.
3. Give him your best phone number and email so he can reach you quickly.
4. Let him know if your circumstances or preferences change.

Speed matters. If a lot comes back, the first person to respond and commit usually gets it. If you’re serious, have your finance conversation started so you’re ready to act.

Have a plan B

A back-up registration is a good idea, but it’s a waiting game. Many buyers register as a back-up on their first choice and also secure a similar available lot.

At Hidden Valley this is easier than in most estates, because most Stage 2 lots are very similar. They’re mostly 1.0077ha with similar frontages and depths. The real differences tend to be position along the road, the vegetation on the lot and personal feel.

Ask yourself what you actually like about your first choice. If it’s the size and shape, a neighbouring available lot may give you nearly the same thing. If it’s something specific, such as a corner position, a back-up registration makes more sense.

Questions to ask Terry

• Is there already a back-up buyer registered on this lot?
• Which available lots are most similar?
• How quickly would I need to act if it became available?
• Can I be a back-up on more than one lot?

Keep an eye on the plan

Because the lot plan updates live, you can also check it yourself. If a lot changes back to available, it will show on the plan straight away.

How property sales progress

To understand back-up offers, it helps to understand the stages of a property sale in WA.

1. Enquiry: a buyer expresses interest and asks questions.
2. Offer: the buyer signs the REIWA offer and acceptance contract.
3. Acceptance: the seller signs to accept, and the contract is binding subject to its conditions.
4. Deposit: the buyer pays the deposit within the time set in the contract. At Hidden Valley that’s 7 days.
5. Conditions: any conditions, such as finance, are satisfied or waived.
6. Settlement: the balance is paid and ownership transfers.

A lot is generally marked under offer somewhere around stages 2 to 5. Each stage is a point where, occasionally, things don’t go ahead.

Making yourself the strongest back-up buyer

When a lot comes back, the buyer who can move fastest and with the most certainty usually secures it. Here’s how to be that buyer.

Have your finance ready

Talk to your lender or broker now. Know how much you can borrow, what deposit you need and whether they lend on vacant rural residential land. If you can show you’re ready, that’s a big advantage.

Have your details ready

Terry will need the full name of every buyer, including middle names, your address, the lot number and, if borrowing, your lender’s name and loan amount. Have these written down.

Choose your settlement agent

If you already know who’ll act for you, you can move without delay.

Decide your ownership structure

Sole owner, joint tenants or tenants in common? Decide before you need to sign.

Know your deposit source

Make sure the $10,000 deposit is accessible so you can pay within 7 days of acceptance.

The emotional side

It’s easy to get attached to a particular lot and feel deflated when it’s under offer. Try to keep perspective. At Hidden Valley, the lots are similar enough that most buyers find a great option among those available. A back-up registration keeps the door open on your favourite while you look at the alternatives.

What Terry can tell you

Terry can tell you what’s reasonable to share, such as whether a lot is under offer and whether others are interested. He can’t share private details about another buyer’s contract or circumstances.

Back-up offers in practice

Here’s how a typical back-up situation might play out.

1. You find Lot X on the plan, but it’s under offer.
2. You call Terry and register as a back-up buyer for Lot X.
3. You also look at Lot Y, a similar available lot nearby.
4. You decide Lot X is still your first choice, so you wait while keeping Lot Y in mind.
5. A few weeks later, Terry calls. The sale of Lot X didn’t proceed.
6. Because your details and finance are ready, you sign the contract and pay the deposit within days.

Alternatively, the original sale proceeds, and you go with Lot Y or another available lot. Either way, you’ve lost nothing by registering.

Tips for staying informed

• Save the lot plan to your phone’s home screen.
• Check it regularly, especially if you’re waiting on a particular lot.
• Keep your phone handy for Terry’s call.
• Reply quickly to any messages.

If you’re buying from interstate

Back-up registrations work the same way wherever you live. The key difference is speed: if a lot becomes available, you’ll need to sign and pay the deposit remotely. Make sure you know how Terry will send the contract, how you’ll sign it and how you’ll pay the deposit, so you can act within hours if needed.

In summary

• Under offer isn’t sold.
• Registering as a back-up buyer is free and non-binding.
• Being ready to act quickly gives you the best chance.
• Have a plan B among the available lots.
• Keep an eye on the live lot plan.

Call Terry on 0408 554 444 or send an enquiry to register.

Common questions

Does it cost anything to be a back-up buyer?

No. It’s simply registering your interest with Terry.

Can I be a back-up on more than one lot?

Yes. Tell Terry every lot you’re interested in.

What happens if the lot becomes available?

Terry contacts you and you decide whether to go ahead.

Am I committed if I register?

No. It’s an expression of interest only.

How will I know if the lot becomes available?

Terry will contact you directly if you’re registered as a back-up buyer. The live lot plan will also change the lot’s status back to available as soon as it’s updated, so you can keep an eye on it yourself.

How quickly would I need to decide?

Usually quickly. When a lot comes back, the first buyer ready to sign and pay the deposit generally secures it. Having your finance conversation started and your details ready puts you in the best position.

Is there a queue of back-up buyers?

There can be more than one person interested in a lot. Ask Terry whether anyone else is registered ahead of you, and he can tell you where you stand.

Should I buy another lot instead of waiting?

It depends what matters to you. Most Stage 2 lots are very similar in size and frontage, so a neighbouring available lot may give you much the same result. If your first choice has something specific, like a corner position, waiting may make more sense.

What details does Terry need to register me?

Your name, best phone number, email address and the lot or lots you’re interested in. If you’re likely to buy with finance, it helps to mention that too.

Can a lot go from sold back to available?

It’s less common, but sales can occasionally fail before settlement. The lot plan always shows the current status, and back-up buyers are the first to hear.

Can I find out why a sale fell through?

Generally not. Other buyers’ circumstances are private. What matters is whether the lot is available.

Do I have to pay anything to be first in line?

No. Registering as a back-up buyer is free.

Should I get finance pre-approval to be a back-up buyer?

It’s not required, but being finance-ready means you can act quickly if the lot becomes available.

What if two back-up buyers want the same lot?

Talk to Terry about how back-up interest is handled. Being ready to sign and pay the deposit quickly helps.

Can I ask Terry to call me if any lot becomes available?

Yes. Let Terry know what you’re looking for and he can keep you informed.

Can I sign quickly from interstate?

Yes. Ask Terry how contracts are sent and returned so you’re ready.

Is there a time limit on back-up registrations?

Ask Terry. If your plans change, let him know so he can update his list.