There are not a lot of buyers out there that are able to buy new property without the help of a home loan or the need to sell an existing property to get the funds needed. Hence, the ones that sell properties have been accustomed to deals that have suspensive conditions in them. And one of those suspensive conditions is “subject to sale” This means that the buyer will offer an amount on the property that he would like to buy, subject to the buyer being able to first sell an existing property. To protect the seller there is a 60 days deadline on the condition.
Using the “subject to sale” in an offer to purchase isn’t always a good idea though. You might think this would benefit the buyer but sometimes it might just lead to frustrating scenarios.
Frustrating for the Seller
If you are the seller faced with this condition then you’ll have to wait for the transaction to be finalized. Another frustrating scenario would be when the seller finds another buyer who would offer a great deal more than what was previously offered. In addition, if you find a buyer who is willing to offer full payment with no delays then that’s the time when you’ll feel ripped off. But that’s part of life.
Frustrating for the Buyer
Now if you were the buyer, then basically you’re racing against time. The most frustrating part of being the buyer when you use this condition is when you’ve found the perfect property but will only be able to afford it once you dispose of a property you own. Now you might be thinking there’s nothing bad about that. But, you forget that property is not so easily sold. And with the condition only having a 60 day deadline then you’ll be forced to find someone who’s willing to buy you’re property. Now the outcome for this leads to only two realistic possible scenarios that would benefit you. Its either you sell your property at a very low price to attract buyers or you fail to sell it and lose you dream property to another buyer.
A word of advice
If you are the buyer in this scenario and you have an existing property you want to get rid off then I suggest you finish that first before you set out on a quest to find that perfect piece of property. Because the truth of the matter is, there are a lot of perfect places out there for you. It’s also a good way to avoid all the hassles mentioned above. And it doesn’t help to know it’s already a known fact that on average selling a house nowadays, minimum can take around four months. And that’s for people who are lucky and selling they’re houses at prices cheap enough to be posted on Wal-Mart. That way, when you already have the cash you can rest assured that when the moment comes you see your dream house; it won’t be a dream anymore but a reality.