Q: "I have found a condo in Provincetown that I would like to buy, but I will need the money from the sale of my condo in Ogunquit. Can I make an offer subject to the sale of my other property?"
A: In general, offers that require the sale of another property tend to be viewed as weak by the seller. At the height of the market a few years back, it was unheard of for a buyer to include this kind of clause. We are seeing more of these today since the market has softened, but they are still viewed cautiously by sellers.
The obvious downside for the seller is that the property will be out of circulation while waiting for you to sell your other property. Oftentimes, the seller will only accept this type of offer with a kick-out clause, which allows the property to continue to be shown. If another offer is received, you will have a short period of time (usually 24-48 hours) to figure out a way to drop the contingency and move forward with the purchase, otherwise, the seller can accept another offer. Even an arrangement such as this is viewed as a negative by sellers, because it may deter other buyers from becoming interested in the property, as some buyers do not wish to engage in any competitive bidding situations. The other wild card in this equation is the uncertainty of how long it will take for a property to sell in another market.
The best advice we can give is to wait until you sell your other property so that you can move with confidence toward a purchase in Provincetown. But, in this market, we have seen many untraditional deals come together, so, if you are determined to buy this particular condo, it may not hurt to try.
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