At present the market is tight, especially at $1Million and above.
Many sellers perceive subject to sale as a “claytons” or a pretend offer. This is because there are so many variables. Subject to sale really means the buyer is asking the seller to take all of the risks, or for the seller to sit back and wait. Buyers should expect to pay more for this level of uncertainty. Usually sellers will expect the full price. The variables for a seller are;
1) How sellable is the subject property?
2) How realistically will the price be set for it?
3) Which agent is going to handle the sale of the subject property?
The degree of confidence each of those answers is made will affect the enthusiasm of the seller.
Buyers should expect as “the norm” a 48 hour clause being written in the contract giving the seller the right to continue to market their property, and accept subsequent offers that may be presented, subject to 2 working days notice on the first offer.
We suggest that buyers look at other ways to make sure that they get the right home, such as selling first, or looking at what financing can be obtained to make their offer stronger when buying. Sellers need to consider that buyers, in order to take the risk for a bridging loan may want to see consideration for this in the price that is offered on the property they are buying.