A warm March has seem to have brought out the buyers. Sales volume is way up over last month and the month isn't even over yet!
With only 72 sales in Newmarket (N07) in February 09, things were looking down, but as of the time of writing this, the Toronto Real Estate Board was reporting 112 Properties sold in March thus far, with another 20 properties marked as conditionally sold on various conditions, with 6 of those being SPP's.
SPP's are those offers which are conditional on the "Sale of Purchasers Property", which is where a buyer makes an offer to buy a home that is conditional on them selling their own home.
As we come into more of a buyers market, we see more an more SPP's, because the buyer is in a position to negotiate it. However, this does not mean that the seller will come a prisoner to the buyer selling their home, as most SPP's are always come with an "escape clause".
An escape clause is the Sellers out. Meaning, that because most SPP's are conditional for 4-6 weeks, an escape clause allows the sellers to still offer the property for sale to other buyers and accept other offers (Higher or Lower). If they decide to accept an offer from another Buyer (Buyer 2), because it is more favourable to them, the seller must then inform the First Buyer (Buyer 1) that another offer has been accepted and this is their notice period. All escape clauses have a notice period, which typically is between 24-48 hours, which is the length of time that Buyer 1 has to decide if they are able to remove their SPP condition, or walk away from the deal and retrieve their deposit.
If Buyer 1 decides to Firm up, then Buyer 2 retrieves their deposit and Buyer 1 Buys the House. If Buyer 1 decides to walk away, then Buyer 2 becomes the Buyer of the home.
It is important to note, that during the process, all facts of the offers remain confidential between Buyers and Seller to ensure that there is no disadvantage to any party.
So, this being said, in a Buyers market, don't be afraid to make your offer conditional on selling your home. With the level of inventory available, most sellers would be thrilled just to have some sort of offer on the table.
With only 72 sales in Newmarket (N07) in February 09, things were looking down, but as of the time of writing this, the Toronto Real Estate Board was reporting 112 Properties sold in March thus far, with another 20 properties marked as conditionally sold on various conditions, with 6 of those being SPP's.
SPP's are those offers which are conditional on the "Sale of Purchasers Property", which is where a buyer makes an offer to buy a home that is conditional on them selling their own home.
As we come into more of a buyers market, we see more an more SPP's, because the buyer is in a position to negotiate it. However, this does not mean that the seller will come a prisoner to the buyer selling their home, as most SPP's are always come with an "escape clause".
An escape clause is the Sellers out. Meaning, that because most SPP's are conditional for 4-6 weeks, an escape clause allows the sellers to still offer the property for sale to other buyers and accept other offers (Higher or Lower). If they decide to accept an offer from another Buyer (Buyer 2), because it is more favourable to them, the seller must then inform the First Buyer (Buyer 1) that another offer has been accepted and this is their notice period. All escape clauses have a notice period, which typically is between 24-48 hours, which is the length of time that Buyer 1 has to decide if they are able to remove their SPP condition, or walk away from the deal and retrieve their deposit.
If Buyer 1 decides to Firm up, then Buyer 2 retrieves their deposit and Buyer 1 Buys the House. If Buyer 1 decides to walk away, then Buyer 2 becomes the Buyer of the home.
It is important to note, that during the process, all facts of the offers remain confidential between Buyers and Seller to ensure that there is no disadvantage to any party.
So, this being said, in a Buyers market, don't be afraid to make your offer conditional on selling your home. With the level of inventory available, most sellers would be thrilled just to have some sort of offer on the table.
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