by Jay McDouall
on Friday, November 8th, 2019 at 5:27pm.
What is a Conditionally Sold Listing?
A property with this status means that someone is currently in the process of buying the home. They've written an offer "Conditional" to typically financing, inspections, etc. Upon receiving an offer, a seller has the option to advertise their property as either Conditional or Active. Due to the number of failed mortgage applications, a seller may choose to remain Active on MLS®, with no indication that they are currently pending a sale. However, there is significant value to a seller in marking their property Conditional (when there is no clause) on the MLS® (Multiple Listing Service).
Sometimes there are instances that the home may be sold, but the current buyers have a clause where they would need to sell their home first. In this case, additional buyers are usually able to bump them after a certain amount of time agreed to in the contract. These times can range from 24 - 72 hours. It is recommended that buyers still view a home that merely has a clause of this nature, as the deal is not as firm.
1. The property is still visible on MLS® for additional buyers to see. Even if a listing is marked Conditional, it still remains on Realtor.ca & many of the other websites. 2. Agents may still show properties that are under contract (an offer). Buyers may feel deceived when they are not informed of an offer before they take time out of their schedule to see a property. If asked, a seller's agent should disclose if there is a pending offer, as an act of respect to the buyer & their agent. If a buyer really loves a house, they can ask their agent to see it even if it is Conditional. 3. If the current deal does collapse (ie. financing is not approved or the inspection is unsatisfactory to the buyer), having marked a property Conditional shows there's an interest in a particular property. Though returning to the market is unfortunate for the seller, the re-activation of the property on MLS® is also a benefit. Both agents & buyers set up on the Portal can see that the property is available again. A buyer's agent will receive a notification that the property is Back on the Market. If a buyer had interest but was too slow to make a move; when the property is put back on the market, it may create a sense of urgency for them if they don’t want to lose the property a second time around.
Talk to your agent for more information or if you're unsure about viewing or making an offer on a property that's Conditional.