What happens if you come across a property that checks all your boxes in a dream home but you find out it is “sold conditional?” When browsing for homes on sites such as HouseSigma should you simply ignore homes that have the “sold conditional” label or are these still valid homes to look at?
Let’s break down the meaning of sold conditional and how it works in real estate.
What does sold conditional mean?
A home that is sold conditional means that the seller of the house has accepted the buyers offer but there are still conditions that need to be met in order for the deal to go through. Some common conditions that are included in a sold conditional agreement are arranging financing for the buyer or allowing time for a proper appraisal or home inspection.
Can you put an offer on a house that is sold conditionally?
Yes!! – you are able to put an offer in on a home that is sold conditionally. It is important to keep in mind that even if your offer is above the price of the previous offer, the seller is still bound by the terms of the contract they signed with the initial buyer.
This is where it is important to understand how sold conditional escape clauses work to ensure that you are aware of how your offer will impact the existing sold conditional status of the home.
How often do sold conditional sales fall through?
The rate at which sold conditional offers fall through is quite low. The National Association of Realtors shows that less than five percent of offers with conditional fall through. However, the rate of success for a conditional sale is impacted by many factors such as how the market is performing in addition to the specific conditions outlined in the contract.