Before Your Seller Accepts That SOP Condition

This week I made a video on sale of property conditions: what they actually mean for a seller, and the tips to protect them, before accepting.

In this newsletter, I want to focus on one thing the video touches on that I think doesn't get enough attention:

How to assess whether the condition has a real chance of being fulfilled.

Because the time is the risk.

The standard OREA sale of property condition is remarkably thin.

It says the offer is conditional on the sale of the buyer's property. That's it.

• It doesn't require the buyer to list their property.
• or list it at a reasonable price.
• or make a genuine effort to sell at all.

A seller can accept one of these conditions and watch their listing sit conditionally sold on MLS for three or four weeks while the buyers haven't done a thing.

I've seen it.

Then the condition expires. The deal dies. And the listing has to go back to market with other buyers wondering why someone walked away.

That stale listing problem is real, and it's where sellers feel the cost most directly.

So before advising a seller to accept one of these, here's what you can look at:

Is the buyer's property already listed?

This is the first question. If it's not already on MLS, that could be a concern. Are they close? Are pictures done? When are they planning on listing?

The buyer is asking your seller to accept risk before they've taken even the most basic step toward fulfilling the condition.

It doesn't make the offer unacceptable, but it impacts timelines and informs the conversation about what obligations need to be established.

Is it priced in line with the market?

A listed property that's overpriced is almost the same as one that isn't listed at all. The condition isn't going to fulfill. You're just waiting longer to find that out.

Pull up the listing. Look at the comparables. If the price is out of range and the sellers seem attached to it, that's a signal.

The conditional period isn't going to fix a pricing problem.

Is there co-operating brokerage commission?

Seems like a no-brainer... I know. But I've seen it happen.

A seller agreed to an SOP conditional offer, only to find out that the buyer was listing their own home as a FSBO.

Don't let that happen.

— — —

None of these are automatic deal-killers. Sometimes the offer is strong enough, the other property is realistic enough, and accepting the condition is the right call.

But the standard clause gives you nothing to work with on its own.

These 3 things are what you need to pay attention to.

Latest YouTube Video:
SALE OF PROPERTY CONDITIONS: 3 TIPS BEFORE ACCEPTING