4 things you should know about subject to sale offers

Due to low inventory it’s going to be extra important to understanding subject to sale offers and how they impact you as a seller.

1. What is a subject to sale offer?

A subject to sale offer is one where an offer to purchase is submitted to you {the seller} with all of the normal terms, except they need to sell their home first

2. You get to keep showing your home - with a first right of refusal

The first right of refusal clause allows you to keep marketing your home.

However, if you get another offer before you can even think about accepting it, you must notify the person entitled to right of first refusal. At that point, the buyer can decide whether or not to buy the property.

If your first buyer declines, you are free to negotiate with other potential buyers interested in the property.

3. Be sure to outline a timeframe for the buyer’s to perform

When negotiating with the buyer you will set a specific timeframe for them to respond. The time frame is usually between 24-72 hours. You, as the seller, will want this to be as little as possible so if another offer comes in you will have an answer as quickly as possible. Your agent will help you navigate through this.

4. Do your homework!

What do you know about the buyer’s home? The one they have to sell to buy your home. What is it worth? Does it need a lot of work? Is it priced right?

Your real estate agent can help you understand these questions about the buyer’s home.

BOTTOM LINE:

With low inventory buyers are struggling to sell their homes and find a new one at the same time. If you plan to list your home this year you may see many subject to sale offers on your home.