Are you considering buying a new home while selling your current one? If so, you may be wondering whether it’s possible to make a conditional offer, but what is a conditional offer? A conditional offer is one that’s subject to the sale of your existing property. In the Scottish property market, this type of offer is not uncommon, but it comes with some key considerations for both buyers and sellers.
Below we’ll explain what conditional offers are, when they’re typically accepted, and whether offering a deposit can help strengthen your position. We’ll also outline why market conditions play a crucial role and how best to approach these types of negotiations.
Can You Make an Offer Conditional on the Sale of Your Property?
Yes, conditional offers happen frequently, particularly when a buyer intends to sell and purchase on the same day. In such scenarios, the offer is usually made subject to the buyer successfully concluding missives on their own sale.
What If the Buyer’s Property Isn’t on the Market Yet?
That’s a different situation. If the buyer has already accepted an offer on their own property and is just waiting to finalise the contract, there’s a high likelihood that their transaction will complete. In such cases, sellers often feel confident enough to accept a conditional offer.
However, if the buyer hasn’t yet found a buyer, or worse, their property isn’t even listed, sellers are unlikely to accept a conditional offer. The risk of the deal falling through becomes much greater, as there's no guarantee the buyer will manage to sell their home at all.
Is It Worth Making an Offer If Your Property Isn’t Sold Yet?
Probably not. Buyers in this position are essentially asking sellers to reserve the property for them without offering any real commitment. Most sellers are understandably reluctant to mark their home as “under offer” and take it off the market, effectively missing out on other serious buyers, without more certainty from the buyer’s side.
Can a Deposit Help Secure a Property?
Refundable Deposits:
Not really. A refundable deposit does little to protect the seller. If the transaction falls through, the deposit is returned, and the seller is no better off for having taken their home off the market.
Non-Refundable Deposits:
Sometimes. A non-refundable deposit can act as a meaningful gesture of intent, but only if the amount is significant enough to justify the seller’s risk.
However, most buyers will be cautious about paying a large deposit they could lose if their own sale doesn’t go through. This creates a dilemma: a deposit too small won’t protect the seller; one too large is unappealing to the buyer. Finding a workable middle ground is challenging.
Can Conditional Offers Work with a Fair Deposit?
In rare cases, yes. If a property has been on the market for a long time and the seller sees little downside, or if there’s strong mutual confidence in a quick sale, the two parties might agree to a short reservation period; with or without a deposit.
Still, these cases are the exception rather than the rule. Most sellers won’t agree to terms that require them to withdraw from the market without any real commitment from the buyer.
How Does a Fast-Moving Property Market Affect Conditional Offers in Scotland?
Conditional offers are more widely accepted in fast-paced markets like Glasgow or Edinburgh, where properties tend to sell quickly and with minimal risk of delay. In slower markets like Aberdeen, sellers face much more uncertainty. Accepting a conditional offer often means losing valuable market exposure, so it's typically avoided unless the circumstances are highly favourable.
Should You Make a Conditional Offer on a Property?
Making a conditional offer is possible, but whether it will be accepted depends on timing, market conditions, and the strength of your position as a buyer. If your current property is already under offer, you’re in a much better place to negotiate. But if you haven’t listed your property yet, or you’re early in the selling process, it’s unlikely a seller will agree to your terms, unless you’re willing to back your offer with a significant non-refundable deposit.
Thinking About Buying and Selling at the Same Time?
At Burnett & Reid, our experienced Aberdeen based conveyancing team can guide you through every step of the process, from preparing your current home for market to making strategic offers on your next one. We’ll help you understand your legal options, assess risks, and negotiate terms that work in your favour.
Contact us today to discuss your move with our expert property team.
