What’s the point? If it’s already sold….
Sellers can be excused for not really wanting to continue with additional showings after agreeing a conditional sale with a buyer. It is understandable that sellers might wish to take a breather, after all the preparations for listing the property and the rush and stress of the initial deluge of showings.
Buyers, too, generally have little enthusiasm for a property that appears to be already “spoken for” by another buyer. After all, why get all excited about the property, when another buyer is in control of that property during the conditional period. Many buyers are afraid that they will be disappointed after seeing the “one that got away”
Even buyer representatives can be somewhat reticent about investing time in showing a property that their buyer’s cannot buy.
For the above reasons and more, the number of showings on properties with conditional sales in place drops 90% or more.
…but what if the conditional sale does not “firm up”?
10-15% of conditional sales are falling through in our current market!
Given the current seller’s market conditions, extremely low listing inventory, offer dates and multiple offers, many more conditional sales are falling through than is usually the case. Historically, conditional sales don’t complete only about 5% of the time but over the last 18-24 months this figure has grown to the point where as many as 10-15% of conditional sales are falling through! See the number of properties shown as being ” back on market” in this recent 7 day snapshot from our Realtor dashboard.
See a previous post on why sales fall through here: http://blog.oasisrealtyottawa.com/conditional-sales-falling-like-autumn-leaves/
Property effectively “off the market”
Sellers will have missed buyers during the conditional sales period and there can be a bit of a stigma associated with a sale falling through. Some buyers and their agents may wonder if there was some issue around inspection that surfaced to kill the previous deal, for example.
Both buyers and sellers should pursue showings:
A buyer may get a “leg up” on a such a property, should it fall through, as many buyers will have moved on and not be in a position to quickly get in to see the property, once it shows up as “back-on-the-market” An aggressive buyer (and agent) may even want to submit an offer to show the seller their level of interest and if anything happens with the original buyer, they are then in a position to control the property. (still not a high % play, but if it is the “right” property, it may be worth the time investment.)
Sellers: be open to showings and keep the property readily available and accessible.
We had an interesting experience recently where we booked a showing on a property that had been conditionally sold to find that snow had not been shovelled and the property was not accessible or safe for viewing. Surprisingly enough, the conditional sale on that property fell through and it was back on the market a few days later. Also no surprise: our buyers had moved on a purchased something else in the meantime.
So while it is normal to lose interest in doing showings post conditional sale, all parties are best to remember “it’s not over ‘til it’s over!
Gord McCormick, Broker of Record
Oasis Realty Brokerage