Many sellers are sacrificing higher prices in favour of a chain-free sale
In the intense heat of the post-pandemic housing market, ‘subject to sale’ offers came to dominate the market in many parts of Scotland. These types of offers – where the buyer will not complete the purchase of the property until their other one is sold – were a useful tactic in the runaway market of the time.
However, now that the residential property market has stabilised into a more balanced and tradeable version of itself, these offers are turning out to be a false friend for many buyers and sellers. In some cases, they’re causing sellers to sacrifice thousands of pounds and buyers to miss out on a great move.
Time to move on
The attraction of ‘subject to sale’ offers for bidders post-lockdown was that they provided the guarantee of knowing where their next home would be before selling their current property – useful in a market where demand outstripped supply.
However, many buyers are now rejecting these offers – even when they’re by far the highest bid received – because they want a chain-free sale. In one sale we saw, the winning bid was almost £20,000 lower than the highest offer which was subject to sale.
Bidders losing out
This was far from a one-off. Our estate agency teams are regularly seeing other sellers leave significant sums of money on the table by not accepting a subject to sale offer. They would rather accept a lower price than face the added complication of a lengthy chain and a wait for the buyer to complete.
The lesson for bidders is therefore to be wary of making these offers in the current market because other bidders may get the pick of the properties – even if they make a lower offer.
Backlash is underway
We expect the use of these deal conditions to decrease in the coming months as buyers wake up to the fact that they’re being disadvantaged by it – and sellers increasingly opt for a chain-free sale.
If you are thinking of moving this year, it’s important to be aware that this ‘subject to sale’ backlash is likely to gain further momentum, and that making an offer of this kind could stand between you and your next move.
