Posted on
March 6, 2025
by
Monira Kamis Arabi
Selling your home is all about balancing risk and reward. One condition that often gives sellers pause is the Sale of Buyer’s Home (SOBH) condition, which means the buyer’s purchase of your home is contingent on them selling their current home first. At first glance, you may think, “Why would any seller accept this?!”—and in many cases, it does carry significant risk. However, there are times when accepting this condition makes sense and can work to your advantage.
When It Might Be Worth Considering:
1. You Haven’t Had Any Other Offers & Don’t Want to Lower Your Price
If your home has been sitting on the market without much activity and you’re hesitant to drop your price, an offer with an SOBH condition might be better than no offer at all. This can help you secure a sale while keeping your asking price intact. Just be sure the buyer’s home is realistically priced and in a sellable condition—otherwise, their inability to sell could leave you stuck in limbo.
2. The Offer Price Is Significantly Higher Than Other Offers
Sometimes, buyers who need to sell their home will offer a premium to make their offer more attractive. If their offer price is noticeably higher than what other buyers are offering—and you’re not in a rush to close—it might be worth considering. A higher price can sometimes justify the added uncertainty, especially if you have protections in place (like an escape clause) to keep your options open.
3. It’s a Seller’s Market & Their Home Is Ready to List
In a strong seller’s market, well-priced homes tend to sell quickly. If the buyer is prepared to list their home immediately and you can confirm they plan to price it competitively, the SOBH condition may be less of a gamble. Additionally, if their home is located in a high-demand area, the chances of a quick sale improve, reducing the risk for you.
How to Protect Yourself
While an SOBH condition can work in the right circumstances, it always carries some level of risk. If the buyer’s home doesn’t sell within the agreed timeframe, you’re back at square one, potentially losing momentum and valuable market time. To mitigate these risks, consider the following safeguards:
A Short Conditional Period: Keep the condition period as short as possible (e.g., 30 days or less) to minimize the time your home is off the market.
An Escape Clause: Also known as a “48-hour clause,” this allows you to continue marketing your home and accept a better offer if one comes along. The original buyer then has a limited window (typically 24-48 hours) to firm up their offer or walk away.
Proof Their Home Is Market-Ready: Request evidence that their home is priced appropriately, professionally marketed, and not in need of major repairs that could hinder a quick sale.
Every situation is unique, and accepting a Sale of Buyer’s Home condition requires careful consideration. While it’s not always the ideal scenario, there are times when it can work in your favor—especially with the right protections in place. Work closely with your Realtor to weigh the pros and cons before signing on the dotted line!