We often encounter property owners who aren’t making the next move in their life because they don’t feel they’re in a financial position to do so. Here’s the thing through – the real estate industry, by its very nature, doesn’t stand still. So there’s no reason that homeowners should feel they have to stand still.
That’s when buying a home ‘subject to sale’ can be a very positive avenue to pursue. Too many people, this can feel daunting and possibly a bit risky. As your real estate agent, The Henry Wong Team® is here to tell you that it doesn’t have to be! We’re here to help you with every step of the process, to minimise the stress to you, the seller, and help you stay agile and adaptable in your life decisions!
As a first step, let’s take a look at what ‘subject to sale’ means, and how we’ll help you overcome any hurdles it might present.
What is ‘Subject to Sale’ in Real Estate?
Subject to Sale is when a real estate buyer puts an offer in on a property, but that offer is subject to the sale of a property the buyer owns. If you’re the buyer, the purchase of the new property hinges on the successful sale of this property you already own. The offer will only proceed once your current home is sold.
Maybe you want to move and live closer to the grandkids, but you don’t have the spare cash lying around for a deposit on another home. You don’t need this to stop you from moving onto your next chapter, you can start putting ‘subject to sale’ offers in on listings closer to your family!
The beauty of this approach is you don’t end up paying off two mortgages at the same time. You also only have to go through one move, from your current home to the new property you buy. Moving is stressful, so minimising that is important to a seamless real estate transition.
Often people will sell a home, rent somewhere while they’re looking for a new home, then buy and move into the new home. That’s a lot of delivery trucks, storage hire, accounts and bill paying and so on. With a subject to sale clause, this can all be avoided and you only need to move once!
How We Overcome the Difficulties of Subject to Sale
Subject to sale can prevent challenges, but here at The Henry Wong Team® we have fine-tuned our strategies to help our vendors overcome them.
The only time a “subject to sale” clause will appeal to a seller is if they’re confident you can sell your current home in a timely manner with deadlines. They will be more confident if the agent you’ve appointed to sell your home has a strong track record with most of their sales being cash unconditional. We’re very proud of having that record here at Henry Wong Team®.
Let’s take a look at some of the challenges you might think are part and parcel of subject to sale, and how we work to remove them.
Subject to Sale is Complicated
It’s complicated. You’re selling a home, you’re buying a home. There’s more paperwork, legalities, interested parties, negotiating… and so on.
Well, sure, there’s a lot going on. But these are all processes that would happen anyway when you sell your home and buy a new one. Subject to sale just means they’re happening at the same time. This is a good thing though, because the process doesn’t drag out. Also, we’ve done this many times, for many happy vendors. We’ll guide you through the entire process, expertly do the heavy lifting and ensure the real estate transaction is as seamless and stress free as possible.
It Means a Lower Sale Price
You’ll feel rushed and settle on a low price to guarantee the deal on the new home. What we like to do at The Henry Wong Team® is ensure you get the best price possible for your home, in the shortest time frame. Often we have just a 20 day marketing period before an auction, and we have some of the highest auction clearance rates in the industry.
One of the ways we achieve this is by leveraging our exceptionally large network of contacts, which includes buyers all across Australia and internationally, with strong inroads into wealthy Asian communities. Most agents simply don’t have the benefit of a network this big, and it helps us give our listings traction and sell properties fast. We’ll get your house sold fast.
The Offer Isn’t Appealing to Sellers
The seller of your next home will give preference to cash or pre-financed offers. Cash is king, so if a cash offer comes along a seller will be inclined to take it because there are no conditions attached. That shouldn’t put you off putting in subject to sale offers.
Henry and his team are expert negotiators with a stellar track record. This provides significant leverage when it comes to negotiating with the seller of your next home, as it reduces the risk for them. We can assure them we’ll get your home sold so the deal can be finalised, and our past and reputation will give them faith that we can do it.
With You Every Step of the Way
The Henry Wong Team® is here to guide you through every stage of a subject to sale transaction. We want to help you successfully move onto the next stage in your life, and if this is the way to do it, then let’s do it well! We take the overwhelm and the stress out of it, and will even help you negotiate a great deal on the dream home you want to purchase.
Get in touch with us and let’s have a chat about all things subject to sale.
