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Back-up offers and why you might consider making one on a conditionally sold home

 

Transcript

As the real estate market heats up, if you're in the market to buy a home, you're more likely to hear these words. "Sorry, that property's conditionally sold."


When a buyer and a seller agree to a conditional sale, they've basically agreed that if the buyer is able to meet certain conditions within the timeframe that they prescribed, that a real estate deal will happen, and if the buyer's unable to meet those conditions, the sale become null and void. So in about 20% of cases these days, buyers are unable to secure the financing that they thought they could get. If you proceeded to look at that house, write a back-up offer, get an acceptable deal subject to the first one falling through, as soon as that deal went sideways, you'd be next in line and the property would be yours, essentially.


In another 20% of cases, buyers are asking for extensions because they've been unable to meet their conditions within the timeframe that they proposed, and again if a seller enters into a back-up offer with you, they essentially have to move to you if the buyer has been unable to fulfill within the timeframe prescribed. They have an obligation to move forward with your contract. So again, that puts you right at the front of the line in probably 40% of cases.


So when you hear conditionally sold, take that with a grain of salt. It's not sold until it's sold, and I'd give the same advice to sellers as well. Even if you have a conditional sale, you're wise to continue to show your property and entertain interest from other buyers, because there's about a 60% chance that that first offer's gonna come together and it's nice to have a back-up offer in your back pocket in the event that it doesn't.

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TeamFisher.com hosted nearly a quarter of a million user sessions and displayed more than 1.2 million pages to our visitors in 2019. If you have a Saskatoon area home you'd like to sell, we know how to get people looking at your home. Reach out to me directly to engage our team and learn about our processes.


I’m always happy to answer your Saskatoon real estate questions.  Reach out by voice or text at 306-241-6676 or email me at norm at teamfisher.com


Norm Fisher

Royal LePage Vidorra

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Norm Fisher, TeamFisher

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

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