Selling your home and buying your dream property at the same time can be rather challenging. So what happens when you find your new home before you’ve sold your own home?
Placing an offer on a property with a condition that allows a buyer some time to sell their existing property is a popular option many agents present. The “subject to sale” arrangements enable a seller to continue to promote their property in the event of receiving another offer to purchase their property. (This is normally not subject to the sale of that purchaser’s property). The real estate agent will ensure the sale agreement is procedurally correct. The “48 hour clause” provides the first buyer 48 hours to obtain an offer on their property or waive the benefit of “subject to sale” condition.
Sellers must be aware, however, that if they’ve accepted a “subject to sale” of say $700.000, then that binds them to that price within the 48 hour time frame even if a second unconditional offer is higher (provided the original buyer can make their offer unconditional within the 48 hour time frame).
As this type of sale is conditional sellers can be justified in asking a higher price. The buyer often expects to pay a higher price giving them piece of mind of settling after the sale of their own property. It also allows the buyer to get more time to sell their property and obtain a good offer . “Subject to sale” conditions often succeed and go to settlement smoothly. We’ve at times also seen sellers reject a subject to sale offer at a premium price only to have the same buyer return and offer a much lower price.
If you’re a seller it’s definitely in your best interest to consider all serious buyers including those that are “subject to sale”.
To find out more or your financing options around buying and selling contact Steve on 0433 124081 today.