Should Sellers Accept an Offer that is Conditional on the Sale of the Buyers' Property?

When there are many Buyers competing for the same homes and not a lot of homes for sale, Buyers tend to make Offers to purchase with minimal or short conditions (for example, a 3 day period to conduct a home inspection), in order to encourage the Sellers’ acceptance.  This may even be the case when the Buyers’ home has yet to be sold, because they have confidence that it will sell quickly, so they are willing to assume the risk that it may not.

But when there are few Buyers looking to make a purchase, such as has become the case since the middle of March 2020, it is more common to see Offers made conditional on the “Sale of the Buyers’ Property”.  It could take the Buyers some time to sell their home, so they are not willing to risk owning two homes at the same time.

Before Sellers decide to accept such an Offer, their Realtor can provide them with what homes, comparable to the Buyers’ home, have recently sold for and how long they took to sell.  The “Sale of the Buyers’ Property” condition should only be entertained if there is a reasonable degree of likelihood that the Buyers’ home will sell. 

If the Buyers’ home does not sell by the agreed to date, the Sellers can extend that period of time or end the contract with the Buyers. 
1) If the contract remains between Sellers and Buyers, the property continues to show as “SC” (sold conditionally) on MLS and the Sellers’ property typically gets fewer showings booked by other agents.  Less exposure to other potential Buyers means it could take longer for the Sellers’ property to sell.
2) If the Buyers are released from the contract, by the time they sell their own home, they may decide they want to buy a different home and essentially the Sellers are back at square one. 

Either way, it can be a frustrating situation for everyone involved!