Sunday, June 15, 2014 – Chestermere Real Estate Guide on Subject to the Buyer’s Home Selling

Written by Marjorie McKay

Subject to the Buyer’s Home Selling.

This is a type of sale that is very useful in helping buyers and sellers get to where they need to be to complete a real estate transaction.

Basically it is a legal document that says when we sell our house we will buy yours. Now this does not go on for an indefinite period of time, and there are conditions that they must fulfill, they have to list it almost immediately on MLS, they must specify the price that they will market their home for and which realtor and real estate brokerage they will list it with. There is a definite time frame that you both must agree to as to how long you will let them try to sell their Chestermere real estate property.

As your representative, your agent will confirm that the buyer’s home is in the right price range so that there is a realistic chance that their home will sell. A comparative market analysis can be performed, sometimes an onsite inspection can be arrange to make sure that the home is market ready. Often the home will be on the market already, or an offer has been accepted and they are just waiting for conditions to be removed.

We also have a “special clause” that we can insert into the offer, saying that if another offer comes in we can give them notice and they will have to remove all of their conditions or let us proceed with the other offer. We can set the time limit on the offer to be whatever we wish and they will agree to 24, 48 and 72 hour clauses are common.

It is imperative for the buyer to get all of their other condition out of the way so that they will have all the information they require to proceed, as the clause states that all conditions will be removed.

This is a good tool to use, as it is better to have a special clause offer than no offer. (As long as their home is market ready and priced right.)

The most stable buyers already have a home for sale, and more equity to put towards your home.

It gives the buyer the opportunity to get their financing in place and to test the marketability of their home. A buyer can also make use of the Multiple Listing Service or MLS in Chestermere, where they can browse for the best home bargains.

At no time are you required to accept a special clause offer.  It is something that you and your realtor should discuss, and depending on market conditions, decide if it is a good option for you.