Should You Wait For An Unconditional Offer?

In a shifting real estate market, deciding whether to accept an offer with conditions, such as a subject to the buyer selling their own home, can be a challenging decision. Here’s a structured approach to help you navigate this situation:

Understanding the Current Market

The real estate market can fluctuate due to various factors, such as changes in economic conditions, government regulations, or shifts in buyer and seller behaviors. Recently, markets like Vancouver have transitioned from a high-demand, sellers’ market to a more balanced or even buyers' market. In such times, sellers might face offers with conditions more frequently.

Evaluating the Offer

1. Assess the Offer Price: If the offer price is attractive and aligns with your expectations or needs, it’s worth serious consideration. An offer that meets or exceeds your asking price can be a strong candidate even with conditions.

2. Understand the Condition: An offer with a condition of the buyer selling their home introduces a degree of uncertainty. However, if the price is right and you’re comfortable with the risk, it might be worth accepting.

3. Consider Market Trends: With recent trends showing a slowdown in sales, especially in higher price ranges, waiting for a better offer might mean a prolonged selling period. If detached home sales are down and the market is cooling, waiting for a no-subject offer might not yield better results.

Strategies for Handling Conditional Offers

1. Backup Offers: Instruct your agent to solicit backup offers. Having a backup offer can provide leverage and security if the primary offer falls through. This strategy can also create competition and urgency for the primary buyer.

2. Market Patience: Acknowledge that the market has shifted. While it might have been common to receive multiple offers with no conditions in a hot market, the current environment may necessitate flexibility. Accepting a conditional offer could be a practical approach given the market conditions.

3. Realistic Expectations: Be prepared for a longer selling process and potentially fewer offers. Adapting to this new market reality involves adjusting your expectations and being open to negotiations.

Potential Outcomes

• Successful Sale: If the buyer’s home sells and the deal proceeds, you achieve your asking price and can move on as planned.

• Offer Collapse: If the buyer’s home doesn’t sell and the offer falls through, you’ll be in a similar position as if you hadn’t accepted the offer in the first place, but with the potential benefit of having backup options or renewed market interest.

Final Considerations

• Consult Your Agent: Work closely with your REALTOR® to understand the implications of the offer and the current market dynamics. Their expertise will be invaluable in navigating these conditions.

• Review Your Goals: Reflect on your personal and financial goals. If selling quickly is a priority, accepting a conditional offer might align well with your needs.

Ultimately, while the market shift might make subject-free offers less common, a conditional offer that meets your price expectations and aligns with your goals can still be a viable option. Adapting to the market’s new reality and strategically managing your offers will help you achieve a successful sale.