When selling your home in Vancouver, you may receive offers with various buyer conditions attached. These conditions protect the buyer by allowing them time to secure financing, conduct inspections, review important documents, or sell their existing property before fully committing to the purchase. While these contingencies are standard, they can impact your sale timeline and certainty. Here’s what sellers need to consider about the most common buyer conditions.
1. Home Inspection Condition
A home inspection allows the buyer to assess the property's condition before finalizing the sale. While most buyers hire professional inspectors, as a seller, you should:- Prepare in advance: Address any known issues before listing to prevent surprises during the inspection.
- Be flexible: Allow access for the inspection and be open to reasonable negotiations if minor issues arise.
- Consider a pre-listing inspection: This proactive step can build buyer confidence and reduce negotiation hurdles.
2. Financing Condition
Even if a buyer is pre-approved, lenders still need to formally approve the mortgage for the specific property. As a seller:- Assess the strength of the offer: A buyer with a larger down payment and firm pre-approval is more likely to secure financing.
- Understand the timeline: Most financing conditions require 5–7 business days, but complex cases may take longer.
- Be cautious with extended conditions: A long financing condition could signal uncertainty in the buyer’s ability to secure a mortgage.
3. Review of Strata Documents, Builder’s Plans, or City Permits
For condos, pre-sale properties, or homes with renovations, buyers may request time to review important documents, such as:- Strata documents: Buyers want to assess financial health, special levies, bylaws, and meeting minutes to ensure there are no hidden issues.
- Builder’s plans: For pre-sale or newly constructed homes, buyers need to verify details match expectations.
- City permits: Buyers may review permits to ensure past renovations were done legally and meet local regulations.
- Have documents ready: Providing complete and updated documents upfront can speed up the process.
- Be transparent: Addressing potential concerns early can prevent deals from falling apart later.
- Understand the impact: Delays in reviewing documents can extend the condition period, so set clear timelines.
4. Sale of the Buyer’s Existing Property
Some buyers need to sell their current home before purchasing yours. This condition introduces more uncertainty and potential delays. Here’s what to consider:- Evaluate the buyer’s market position: If their home is already listed or under contract, the risk is lower.
- Include a time clause: Also known as a “48-hour clause,” this allows you to continue marketing your home and accept other offers. If you receive a better offer, the original buyer must remove their condition within a set period or step aside.
- Weigh the trade-off: While accepting this condition may broaden your buyer pool, it could delay your sale if their home doesn’t sell in time.
How Sellers Can Protect Themselves
To minimize risks while maintaining a competitive position in the market:- Encourage strong offers: Buyers with fewer conditions or shorter timelines are more attractive.
- Negotiate effectively: If conditions are necessary, work with your REALTOR® to set reasonable deadlines.
- Keep the lines open: Communication with the buyer’s agent can help gauge how serious and prepared the buyer is.