Should I accept an offer conditional on the buyer selling their house?

What you are actually agreeing to

A condition on the sale of the buyer's property means your house is committed to them while they go and sell somewhere else. Every risk in that second sale becomes a risk in yours: their price, their marketing, their buyer, and sometimes a third sale behind that one.

Buyers in this position often offer more, or accept terms they would otherwise resist, because they know what they are asking for. That is the side of the trade in your favour.

What to find out before you decide

• Is their house on the market yet. Listed and being shown is a different proposition from about to be listed.
• Is it priced sensibly. Ask what it is on at and what comparable houses in their area have sold for. A buyer holding out for an optimistic number can keep your house tied up for a long time.
• How long they want. The date in the agreement is the date your property is off the market for.
• What happens if it does not sell. Whether they can proceed anyway, with bridging or another arrangement, or whether the whole thing simply ends.
• Whether there is a chain. If their buyer is also conditional on selling, the risk multiplies behind them.

The protections that change the picture

Two things do most of the work. The first is keeping the right to continue marketing your property while the condition runs.

The second is a clause, sometimes called a cash out clause, that lets you bring things to a head if another acceptable offer arrives. Under it, the first buyer has a short notice period to either confirm their agreement or step aside. Whether your agreement has one, and how many days it gives them, is worth as much attention as the price.

You can also take a backup offer, signed so it only takes effect if the first agreement does not proceed.

Your own timing

If you are buying as well, a conditional sale pushes your certainty out. Work out what you would do if the buyer's house had not sold by their date: extend, cancel, or start again, and what each of those costs you against your own plans.

These clauses vary a great deal in their wording, and the wording is what decides your position if it goes wrong. Have your lawyer read the agreement before you sign it.