What are estate agents even talking about? Explaining the jargon.
It can sometimes feel as if estate agents and solicitors speak an entirely different language. They use so much jargon you don't ordinarily use in daily life.
And when most of us only move once every 7 years on average, it is easy to forget that terminology between your moves.
It can sometimes feel as if estate agents and solicitors speak an entirely different language. They use so much jargon you don't ordinarily use in daily life.
And when most of us only move once every 7 years on average, it is easy to forget that terminology between your moves.
So, this blog aims to shed some light on the mysterious words agents use so that you are down with the lingo when you move house!
EPC - Energy performance certificate. You know the stickers you get on the side of washing machines and fridges? With the rainbow-coloured arrows? This is one of those, but for the whole house. It shows you how energy efficient the property is.
FTB - First-time buyer. This is someone who has never owned a property before and can buy without selling. This would create the 'bottom' of a property chain.
BTL - Buy To Let. If a property has the potential for a good rental return or there is a strong market for potential tenants for a property, agents will often advertise it as being a good BTL opportunity. This may also be because the seller of the property has recently rented it out, and there's a track record of the income that the property generated. It is a simple way to highlight the property to potential landlords.
No Chain - a property chain is where one buyer has a property to sell, so another property is connected in a chain. There can be lots of 'links' that are all reliant and dependent on one another. When a property is sold without another being purchased, this will end the chain. As a buyer, it can be helpful to know if the seller of a property you're interested in is going to buy another property or not. You'll know that the chain ends here, which can be important information, particularly if you're already in a lengthy chain. Or, if you need to move very quickly, long chains typically take a long time to complete.
UO - Under offer - this is confirmation that there is an acceptable offer on the property, but it's not yet sold. Essentially it means the same things as SSTC, which some agents prefer to use. A buyer has been found, and a price has been agreed upon, but the contracts are not yet signed. If you were to make an offer of more than has been accepted, the seller would still be able to switch from their buyer and accept your offer instead. This is known as gazumping.
SSTC - Sold subject to contract. Like Under Offer, SSTC means that a buyer has been found and a price has been agreed upon. The transaction is underway with the solicitors, but the sale has not yet completed. If a property you're interested in is marked as SSTC or UO, it's worthwhile letting the agents know of your interest. 1 in 3 property sale transactions don't get to completion, so the agent will notify you if that property sale falls through and comes back on the market.
AIP - Agreement In Principal. Sometimes called a mortgage in principle or a mortgage promise. Lenders will use slightly different terminology, but they are essentially the same thing. A mortgage broker or a bank can give you an agreement in principle to show that you've been approved for a mortgage of a specific value, subject to financial verification and a survey of the property. This can be shown to the estate agents when you make an offer to verify that you can pay the price you've offered.
OO - Offers over. This is the wording that is sometimes used when marketing a property to show that the advertised price is LESS THAN the intended sale price. The seller is looking for more than this figure. The exact amount is unclear, so it's up to the buyer to make an offer and negotiate upwards until the price reaches a figure the seller is happy to accept. This system, adopted in Scotland and for auction properties, can encourage sales to go above the asking price. The initial interest in the property will be relatively high because the price appears very reasonable. It can be an excellent way to market a property if the end value is tricky to estimate or if you're hoping to test the market.
SDLT - Stamp Duty Land Tax. Often just called stamp duty, this is the tax payment that becomes due when you purchase a property. It's based on your circumstances and the price you pay for the property. You can't add this amount to your mortgage, so you'll need the funds available in addition to your deposit amount.
Gazumping - An offer has been accepted on a property, but the seller decides that they will take another higher offer from someone else, pulling out of their original sale.
Gazundering - This is when a buyer, usually close to the exchange date, reduces their offer on a property. The seller is left with an almost impossible decision. Either accept a lower amount for the property or decline and try to find a new buyer. This is awful practice and is a very underhanded way to reduce the purchase price of a property. The seller doesn't know if they can get a new buyer or at what price. They are likely packed up and ready to move out, too, so often, the only way to carry on is to accept the lower offer. It is a horrific practice and puts a downer on the whole moving experience. As an agent, these are some of the worst phone calls to make. It is heartbreaking to be forced to make such a terrible decision when you're over a barrel and have no choice but to agree.
So now you know, and when you speak to the estate agents while trying to move house, you'll know precisely what is happening.
Moving house shouldn't be a stressful experience, and we are committed to improving the process for as many people as possible! Our team of experts are happy to help wherever they can. Get in touch if you have encountered any terminology you didn't understand.