Understanding the Value of Sale Conditions in Real Estate Transactions

Josh Perez • August 26, 2024

When selling a property, one of the key factors that can influence the final sale price is the presence of sale conditions. As a real estate professional, I often get asked whether a seller might accept a lower offer if the buyer's offer comes with fewer conditions, particularly if it's a non-sale condition. But what does that really mean for the seller, and how do we determine the value of such conditions?



In a recent conversation with a fellow agent, we delved into this topic, and the insights were incredibly valuable. The truth is, every condition in a real estate transaction has a value attached to it, but that value isn't set in stone—it varies depending on the seller’s priorities and the specifics of the property.

"Not all conditions of sale are equal... if it looks like it's not achievable, then we seriously have to consider the other offer."

The Role of Sale Conditions

When guiding a seller through the process, it's crucial to evaluate the impact of sale conditions on the potential success of the transaction. For instance, if there’s a condition of sale—where the buyer’s offer is contingent on selling their current home—it could introduce a level of uncertainty. On the other hand, a non-sale condition offer might seem more straightforward but could come at a lower price.

My colleague mentioned an example where there could be a $50,000 difference between two offers: one with a condition of sale and one without. The task then is to analyze the situation thoroughly. Is the condition of sale likely to be fulfilled? Is the buyer’s current property priced realistically, and does it align with comparable properties in the market? If the condition seems achievable, going for the higher offer makes sense. However, if it appears unlikely, it might be wiser to consider the other offer, even if it’s lower.


Not All Conditions Are Equal

This brings us to an important point: not all sale conditions are created equal. As an agent, it’s part of my job to act as if I’m your realtor, even on the other side of the deal. I’ll dig deep into the details, asking questions like: “What is this house listed for? Does the asking price align with market comparables? Is the buyer's condition realistic, or is it based on overly optimistic expectations?”

If the condition seems shaky—say, the buyer's current property is listed at a price far above what similar homes are selling for—then there’s more reason for concern. In such cases, the condition of sale might not hold, and that needs to be factored into the seller's decision-making process.


Making Informed Decisions

At the end of the day, my goal is to ensure that sellers are making informed decisions. By laying out all the possibilities and carefully evaluating the likelihood of each scenario, we can arrive at the best possible outcome. Whether that means accepting an offer with a condition of sale or opting for a lower, more straightforward deal, the key is understanding the value and risks associated with each option.



If you’re considering selling your home and want to navigate these complexities with confidence, feel free to reach out. I'm here to guide you through the process, ensuring you get the most value out of your property sale.

Josh Perez
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