Moving home is a big deal – it’s stressful, and there are many unknowns to navigate. For those who need to sell their own home before buying a new one, the transition is even more complicated. These are called ‘subject-to-sale’ buyers.
They’re facing an uphill battle because the seller of the home they have their eye on would prefer to sell to a cash buyer or a buyer with pre-approved finance. If they can’t sell to anyone in those categories, they might consider a ‘subject-to-sale’ buyer. If you need to sell before you can buy again, you’re already at a disadvantage!
There are bridging loans that can help in this situation, but for many they aren’t an option. Their financial situation may not be enough to qualify with traditionally strict lenders.
What’s the answer then? Well, today I want to present to you a smarter way to buy subject to sale. A way that requires the right connections, and the right person to help you connect the dots.
Before we dive into that, let’s take a quick look at what it means to buy ‘subject to sale’.
What Does ‘Subject to Sale’ Mean?
Let’s say you are moving home, and your property is on the market. You need to purchase another property, but you don’t have the financial leverage to do so until you have sold your home.
When you identify a property you’d like to purchase, you enter into negotiations making it clear that your offer on the property is subject to the sale of your own home. The purchase is conditional and will only proceed once your home sells.
For a buyer, this is a practical means of getting around the problem of not having the available funds to purchase their new home. For the seller, you can see why its a risky proposition. There’s a lot of uncertainty involved, with the risk of delays and collapsed deals.
For these reasons, it’s often a struggle for subject-to-sale buyers to get over the line.
Why Off-Market Properties Are a Better Option
At The Henry Wong Team®, our vendors will often also be looking to buy a new property to start the next chapter of their life in. On many occasions, they rely on me and my team to get the sale done so they can financially make their next move. This means they have to put an offer on a home ‘subject to sale’.
We can help guide them with this, and what we normally suggest is they shift their approach. Don’t try and compete in the open market where sellers hold all the power, bidding on listings that are already attracting multiple buyers.
Instead, move off-market. There are sellers out there that don’t want to go public with their listing. They’d rather sell it off-market, using their real estate agents’ network to spread the word that the home is for sale and open to offers. People sell like this for many reasons – maybe it’s for privacy reasons, maybe they simply haven’t gone to market yet.
Off-market sellers are generally more receptive to subject-to-sale offers. They have more time on their hands, they’re patient, and they don’t have multiple counter offers to consider.
But how do you find this category of vendors?
The Power of Connections
This is where having a vast network becomes invaluable. I’ve spent years growing mine, engaging with buyers, sellers, buyers agents, real estate industry experts and leaders in the business world. I love connecting the dots between members of my network, finding people with a need and directing them to someone who can help them with it.
It works the same way with off-market sellers and subject-to-sale buyers. I know buyers’ agents who specialise in securing off-market deals, and have relationships with sellers who are considering moving but haven’t listed yet. As a connector, bringing these types of buyers and sellers is what I do.
Sell and Buy at the Same Time Without the Stress
While selling first and buying later may seem like a practical option that suits your financial situation, there are risks involved. You may have to find short-term accommodation in the interim, or have to rent a property for a while. You may even end up rushing into buying a property that isn’t quite right.
The Henry Wong Team® can help make this monumental moment in your life stress free by assisting with both sides of the process. Here’s what we can help you with:
- Selling your current home: I’ll get you the best possible price for your property when you sell. My track record and auction clearance rate speaks for itself.
- Finding the right property: don’t rush in and buy the wrong home. I’ll connect you with off-market opportunities through sellers and buyers agents.
- Navigating the subject-to-sale process: I want everybody to come out of this process happy and ready to move onto their next chapter in life. My strategy and experience helps make this happen.
Contact the Brisbane Real Estate Agents Who Care
Don’t get stuck in a frustrating cycle of rejected offers. Get in touch with me and my team, and let’s take control of the subject-to-sale process and set you on the path to success. I’ll connect you with the right people, and direct you to properties that aren’t even on the market.
Reach out today with all your real estate questions. I’m always here to help!
