Here's What You Need to Know About "Subject to Sale"

For many homeowners, upgrading to a larger home, a better location or a property that better suits their lifestyle is an exciting next step. But one question often comes up before the search even begins:

Do I need to sell my current home before I can buy my next one? The answer isn't always straightforward.

Depending on your financial position and the current market, there may be several strategies available to help you make your move. One option that's becoming increasingly relevant is purchasing subject to the sale of your existing home.

What Is a Subject to Sale Offer?

A subject to sale offer is exactly what it sounds like.

It means you make an offer to purchase a new property, but the contract is conditional upon the successful sale of your current home. If your property doesn't sell within the agreed timeframe or under the agreed conditions, you're generally able to withdraw from the purchase without being required to proceed.

For many homeowners, this strategy can provide greater confidence when upgrading, helping to reduce the risk of committing to a new property before knowing exactly how much they'll receive from the sale of their existing home.

Why Do Buyers Choose This Strategy?

A subject to sale offer can offer several advantages, including:

• Reducing the financial pressure of owning two properties at the same time.

• Providing greater certainty about the funds available for your next purchase.

• Minimising the risk of having to arrange temporary accommodation if settlement dates don't align.

• Allowing you to search for your next home without feeling rushed into selling first.

For homeowners who want a smoother transition between homes, it can be an effective strategy when structured correctly.

Are Subject to Sale Offers Always Accepted?

Not necessarily. From a seller's perspective, a subject to sale offer introduces an additional condition that can delay or even prevent the transaction from proceeding. If a seller receives multiple offers, they may choose an unconditional offer over one that's subject to another property's sale.

However, market conditions play a significant role.

In recent years, Australia's highly competitive property market meant many sellers had little incentive to accept conditional offers. As market conditions continue to shift, we've started to see subject to sale offers becoming more common and, in some cases, more acceptable to sellers than they have been previously.

Before You Start Looking, Understand Your Options

Before attending home opens or putting your current property on the market, it's important to have a clear understanding of your financial position.

Some of the key questions to consider include:

• How much equity have you built in your current home?

• What is your current borrowing capacity?

• Is a subject to sale offer the right strategy for your situation?

• Would using your existing equity or exploring bridging finance provide greater flexibility?

Having these questions answered early can help you make informed decisions and avoid unnecessary stress throughout the buying and selling process.

How WestGen Finance Can Help

Upgrading your home is about more than simply finding your next property—it's about having the right finance strategy in place before you make your move.

At WestGen Finance, we take the time to understand your individual circumstances, explain the options available to you, and help you develop a plan that aligns with your goals. 

Before you make your first move, speak with the team at WestGen Finance. We'll help you understand what's possible and put a strategy in place that gives you the confidence to move forward.