Handling subject-to-sale offers can be a complex process. Whether you are a buyer or a seller, here are five tips to navigate subject-to-sale offers effectively:
Evaluate the Buyer's Financial Situation
Before considering a subject-to-sale offer, work with your real estate and conveyancing team to carefully assess the risks of accepting a subject-to-sale offer. Seek your team's expert advice to verify the buyer's creditworthiness, employment stability, and any contingencies related to their own property sale. This evaluation will help you gauge the buyer's reliability and the likelihood of a successful transaction.
Set Realistic Timeframes
Subject-to-sale offers often come with a specific timeframe for the buyer to sell their current property. As a seller, it's essential to set realistic deadlines that strike a balance between accommodating the buyer's needs and protecting your own interests. Consider market conditions, average listing times in your area, and the buyer's circumstances when negotiating the subject-to-sale clause. Clearly define the timeline for the buyer to secure a sale, allowing sufficient time to market and sell their property.
Protect Your Interests with Contingencies
When accepting a subject-to-sale offer, include appropriate contingencies to safeguard your position as the seller. These contingencies could include a kick-out clause, allowing you to accept a better offer if one arises, or a provision that permits continued marketing of your property during the buyer's sale process. By including such safeguards, you minimise the risk of being left in limbo if the buyer's financing or property sale falls through or takes longer than expected.
Communicate and Stay Informed
Maintaining open lines of communication is crucial when dealing with subject-to-sale offers. Your agent and conveyancer will be regularly touching base with the buyer and their team. They will keep you informed about how the buyer is tracking any changes in market conditions, such as increased buyer interest in your area or fluctuations in property values. By staying in the loop, you can make informed decisions and adapt your strategy accordingly.
Consider Alternatives
While subject-to-sale offers can present opportunities, it's essential to consider alternatives. If you receive a subject-to-sale offer but are concerned about the associated risks or delays, explore other options, such as accepting offers from buyers with existing financing. By keeping an open mind and exploring various possibilities, you can increase your chances of securing a successful sale without compromising your objectives.
Handling subject-to-sale offers requires careful consideration and strategic decision-making. By evaluating the buyer's financial situation, setting realistic timeframes, protecting your interests with contingencies, maintaining effective communication, exploring alternative options, and working with an expert team, you can navigate subject-to-sale offers with confidence and increase the likelihood of a successful transaction.
Back yourself with expert advice and a dedicated support team when making your next real estate move. Speak with your local Area specialist Brett Reddell. Brett Reddell has the in-depth knowledge to guide you in the right direction when selling or buying in the Omreau real estate market.