Since the market softened in early 2022, we’ve seen a noticeable increase in sellers giving serious consideration to offers conditional on the sale of another property.
Sometimes it becomes even more layered — your buyer needs to sell… to a buyer who also needs to sell. A chain of well-meaning people, each needing certainty before they can provide it. Ever played dominos? Or Jenga? You get the picture.
An offer subject to house sale is not inherently good or bad. But it does introduce risk. Before accepting one, here are four things worth thinking through carefully.
Is their property on the market yet?
If it’s already listed, you can assess:
Better still if they already have:
If they are not yet on the market, you may want written agreement on:
With the greatest respect to private sellers, the process is often less straightforward than it seems. When multiple sales are interdependent, the agreement you sign is only one part of the picture.
If timelines shift or conditions aren’t met, the entire chain may need to be renegotiated — requiring several parties to adjust in order for everyone to move forward. Securing that cooperation is often easier when someone has a clear view of the whole structure. As a seller, you’ll need to weigh potential benefit against exposure, and ensure your solicitor structures the agreement with appropriate safeguards should the chain stall.
You need to understand the asset that must sell in order for your sale to complete.
This includes:
Occasionally, we see buyers who need to sell offshore property. When you have limited visibility or access to reliable data about that market, you are effectively flying blind.
Personally, I’m not a fan of coin flips when we’re talking about your largest asset.
This is a big one.
There is a significant difference between:
If their pricing is ambitious and their suburb is slow, your risk increases.
Remember: your agreement may tie your property up for 4–6 weeks (or longer). In that period, other buyers may hesitate — especially if they feel the property is effectively spoken for. Most won’t risk missing another opportunity while waiting to see how your conditional contract unfolds.
Almost every property is saleable.
What you’re watching for are factors that may:
Examples include:
If these issues exist and your buyer hasn’t factored them into pricing or timing expectations, the risk flows back to you.
A standard house sale condition often runs for 4–6 weeks.
During that time:
If the agreement falls over because your buyer fails to sell, you may be back to square one — but without the early-campaign momentum.
Taking time to assess risk upfront is not pessimism. It’s prudence.
Always — always — give yourself an out.
An appropriately drafted escape clause allows you to:
There are many variables in a chain sale that you and your buyer simply cannot control. An escape clause gives you a defined pathway to certainty.
The above is not legal advice. We strongly recommend obtaining your solicitor’s guidance regarding drafting and specific circumstances.
Understanding the moving parts behind a house-sale condition allows you to make informed, strategic decisions.
Happy selling.