• What the condition is
• Four ways to sequence it
• Why listing first matters
• Pitfalls
• Benefits
• Before you offer

The short answer

An offer subject to the sale of your home is a legitimate tool, but it is the weakest offer a seller can receive, and sellers in Halifax often decline it when the market is active. In most cases the safest order is to list your own home first, price it against recent sales, and have it on the market, or under a firm agreement, before you write an offer on the next one. Making an offer before your home is listed is the riskiest of the options.

Defining the term

What a sale of buyer's property condition does

A sale of buyer's property condition (often shortened to SOBP, or described as an offer "subject to the sale of the buyer's home") makes your purchase depend on selling your current property. If your home does not sell by an agreed date, you can end the agreement and recover your deposit, as the condition is written for your benefit. The wording matters a great deal: the condition should say exactly what must happen (a signed agreement on your home, or the conditions on that agreement removed), by what date, and who can act on it.

For the seller of the home you want, the condition is a gamble, because they have accepted an offer from a buyer who may not be able to proceed. For that reason, accepting your offer does not take the home off the market. The listing normally stays active, showings continue and other buyers can still make offers. This is built into the agreement through a continued marketing clause, widely called a 72-hour clause or escape clause. It lets the seller keep marketing the property and, if a stronger offer arrives, give you written notice. You then have a set period to remove your condition and commit, or step aside. Despite the name, the notice period is whatever the parties negotiate, and the exact wording in any agreement controls what happens.

1. You make an offer subject to the sale of your home.The seller accepts, but the listing stays active and they keep the right to market the property.
2. A competing offer arrives.If it is firmer than yours, the seller may be able to deliver written notice under the clause.
3. The notice period runs.You have the agreed time to remove the condition and proceed, or let the agreement end.
4. You commit or step aside.Removing the condition before your home has sold means you are bound to buy whether or not it closes.

The central question

Four ways to sequence a sale and a purchase

Most Halifax homeowners who ask "should I list first or offer first?" are choosing between four approaches. Each trades certainty for competitiveness in a different way.

Lenders generally provide bridge financing against a signed agreement on your existing home with a firm closing date, so that approach works best when your sale is already secured. It is short-term borrowing at a higher rate than a standard mortgage, so confirm the terms with your lender or mortgage broker before relying on it.

Our position

Why listing your home first usually comes out ahead

An offer subject to a sale is only as strong as the sale behind it. When your home is already listed at a price supported by comparable sales, you give the other seller something concrete: showings, feedback, perhaps an offer in hand. A seller evaluating two conditional offers will favour the one with a home that is visibly moving. When your home is not yet listed, the seller is being asked to trust a plan.

There is also a benefit to you. Once your home has been exposed to the market, you know much more about what it is worth and how long it may take to sell. That information shapes what you can afford to offer on the next home, which is the number that matters most.

From the Listing Side

When we represent a seller and a conditional offer arrives, the first questions are practical. Is the buyer's home listed? Is the price in line with recent sales? How many showings has it had, and for how long? A home that has been on the market for weeks with little activity makes the condition look doubtful, whatever the buyer's intentions. We read listing history the same way when we advise buyers, and we will tell you plainly if your own home needs to be repositioned before an SOBP offer has a realistic chance.

Offering before your home is listed

There are cases where this can be reasonable, for example a home that is close to market-ready, a seller who is in no hurry, or a property that has been on the market a long time without much interest. Even then, a seller may ask that you list immediately, or that you confirm a listing date in writing, as part of the agreement. If you are weighing this path, have your home professionally evaluated first so the timeline you propose is one you can keep.

What goes wrong

The pitfalls of an offer subject to sale

The seller can move on

A continued marketing clause is the usual price of the condition. If a firmer offer arrives, you will be asked to commit or step aside, often with a short window and before your own home has sold. Choosing to remove the condition early means you now own a purchase that does not depend on your sale.

Your sale has its own conditions

Your buyer will likely have their own inspection and financing conditions. If your condition says "subject to the sale of my home," decide whether that means a signed agreement or one with all conditions removed. Where it is unclear, you can find yourself obligated to buy before your buyer's conditions are satisfied.

Closing dates need to line up

Even when both agreements are firm, the closing and possession dates may not match. That gap is when bridge financing, a negotiated possession date, or a rent-back arrangement comes into play, and it is far easier to plan for before you write the offer than after.

It can push you to sell for less

If a clause puts you on a clock, the temptation is to accept a lower offer on your own home to keep the purchase. A price decision made under pressure often costs more than the competitive edge the offer gained.

The Resale Read

The condition ties two prices together: what you can sell for and what you can pay. If your home is priced above where comparable sales support it, it will sit, the clause will run out of time, and the purchase can fall apart. Treat the pricing of your current home as the foundation of the whole plan, and set your budget for the next home on a realistic sale number, not the most optimistic one.

The case for it

What an SOBP condition does well

For the right buyer, the condition solves a genuine problem. It lets you pursue a home you want without taking on a purchase you cannot yet afford to close.

Where it protects you

• You are not left owning two homes if your sale does not go through
• You do not have to sell in a hurry and move out before you have found the next property
• Your deposit is protected if the condition is not met by its date

Where it tends to work

• The seller has been on the market for some time and is open to a clean, patient buyer
• Your home is listed, well priced and generating showings
• The market is balanced enough that sellers are not receiving several offers

Market conditions decide how much weight the condition carries. In a busy segment with competing offers, sellers have little reason to accept it. In a quieter segment, or on a home that has lingered, it can be accepted readily. Ask us for the current activity for the area and price range you are considering, so the strategy fits the market as it is now.

Practical steps

What to settle before you write the offer

Have your current home evaluated, and decide whether to list it before you offer. Speak with your lender or mortgage broker about how your purchase will be financed if your sale closes later than the purchase, including whether bridge financing is available to you. Agree with your buyer's agent on how the condition will be worded, which date it will expire, and what the notice period will be if the seller keeps marketing. Finally, have the wording of the condition and any related clause reviewed by your real estate lawyer before you sign. The condition has legal consequences, and this article is general education, not legal or mortgage advice.

This article is general information for Halifax Regional Municipality buyers and does not replace advice from a real estate lawyer or mortgage professional. Agreement wording, notice periods and lender requirements vary, and the terms of your own agreement will govern.

Planning to sell and buy at the same time?

Before you write an offer subject to the sale of your home, speak with our buyer team. We will review recent sales to set a realistic price on the home you are selling, read how the seller of your target home is likely to respond, and help you choose an order of steps that does not leave you carrying two properties.

Authored by Sandra Pike, REALTOR® | The Pike Group, Royal LePage Atlantic

One of Halifax's Top Resale Listing Agents Since 2016 | Data-Driven Market Insights and Real Estate Commentary