A practical guide to making subject-to-sale offers work in Vancouver's competitive market. Learn clause structures, timelines, seller concerns, bridge financing alternatives, and strategies to strengthen your conditional offer.
You’ve found your next home, but you haven’t sold your current one. Can you make an offer contingent on selling your property first? In Vancouver’s competitive market, subject-to-sale offers face significant headwinds—but with the right strategy, they can work.
This guide explains how subject-to-sale clauses function, why sellers are often hesitant, and practical strategies to make your conditional offer competitive. Whether you ultimately use a subject-to-sale clause or choose an alternative like bridge financing, understanding your options helps you navigate the transition smoothly.
What Is a Subject-to-Sale Clause?
A subject-to-sale clause makes your offer to purchase contingent on selling your current home. If you don’t sell your property within the specified timeframe, you can withdraw from the purchase without losing your deposit.
How It Works
- You make an offer on a new property with a subject-to-sale clause
- Seller accepts (knowing you must sell first)
- You have a set timeframe (typically 30-60 days) to sell your home
- If you sell: You remove the subject and proceed with the purchase
- If you don’t sell: You can walk away, deposit returned
The Standard Clause Structure
A typical subject-to-sale clause reads something like:
“This offer is subject to the Buyer selling their property at [address] on terms satisfactory to the Buyer on or before [date]. This condition is for the sole benefit of the Buyer.”
The clause usually includes:
- Your current property address
- The deadline to sell
- Whether you must also complete (close) your sale
- Time clause provisions (explained below)
Why Sellers Resist Subject-to-Sale Offers
Understanding seller concerns helps you address them:
Their Home Stays “Off Market”
When a seller accepts your conditional offer, they effectively take their home off the market. Other buyers see “Sold” or “Pending” and move on. If your sale falls through, the seller has lost valuable marketing time.
Uncertainty and Stress
The seller doesn’t know if the deal will actually happen. They can’t make firm plans—finding their next home, coordinating moves, or making financial commitments. This uncertainty is stressful.
Chain Reaction Risk
If your sale depends on your buyer selling their home (and so on), the entire chain can collapse if one link breaks. Sellers prefer certainty.
Opportunity Cost
While waiting for your sale, a better offer might have come along. The seller may feel they’ve missed out, especially in a rising market.
The Time Clause (24/72 Hour Removal)
To protect themselves, sellers typically require a “time clause” with subject-to-sale offers.
How Time Clauses Work
- Seller accepts your subject-to-sale offer
- Seller continues showing the property
- If seller receives another acceptable offer:
- You’re given 24-72 hours to remove your subject
- You must either commit firmly (no conditions) or step aside
- If you can’t remove the subject, the other buyer takes over
Why This Matters
The time clause forces a decision when it counts. You’ll need to:
- Secure bridge financing quickly, OR
- Accept the risk of owning two properties temporarily, OR
- Walk away and lose the home
Planning ahead is critical. Know your bridge financing options before you start making offers.
Making Your Subject-to-Sale Offer Competitive
When competing against unconditional offers or buyers without properties to sell, you need every advantage.
Strategy 1: Pre-List Your Property
Most effective approach. List your home for sale before making offers:
- Shows you’re serious and actively selling
- Demonstrates market interest in your property
- Gives sellers confidence your home will sell
- Reduces perceived risk significantly
Even better: Have an accepted offer on your home before offering on your new one.
Strategy 2: Price Your Home Aggressively
A competitively priced home sells faster, reducing seller risk:
- Price at or slightly below market value
- Be prepared to act quickly when offers come
- Shorter selling timeline = more attractive to the seller you’re buying from
Strategy 3: Offer a Shorter Subject Period
Standard subject-to-sale periods are 30-60 days. A shorter period reduces seller risk:
| Subject Period | Seller Perception |
|---|---|
| 60+ days | Very risky—likely rejected |
| 45 days | Standard, still concerning |
| 30 days | More acceptable |
| 14-21 days | Attractive if your home is listed/showing activity |
Only offer a short period if your home is actually likely to sell in that time.
Strategy 4: Strengthen Other Terms
Make your offer attractive in other ways:
- Higher price: Offset risk with value
- Larger deposit: Shows commitment
- Flexible possession: Let seller choose date
- Minimal other subjects: Remove inspection if comfortable
- Personal letter: Explain your situation (some sellers respond to this)
Strategy 5: Offer a Non-Refundable Deposit
Some buyers offer a small non-refundable deposit ($5,000-$10,000) that the seller keeps if the subject-to-sale fails. This compensates the seller for the risk.
Caution: You lose this money if you can’t sell. Only do this if you’re confident.
Strategy 6: Accept a Tight Time Clause
Agreeing to a 24-hour (vs. 72-hour) time clause shows confidence:
- Signals you have backup plans (bridge financing)
- Reduces seller’s opportunity cost
- Makes them more comfortable accepting
Bridge Financing: The Alternative
Bridge financing lets you buy before you sell, eliminating the subject-to-sale clause entirely.
How Bridge Financing Works
- You arrange a short-term loan secured by your current home
- Use that loan (plus your new mortgage) to buy the new property
- Sell your current home
- Repay the bridge loan from sale proceeds
Bridge Loan Terms
| Feature | Typical Terms |
|---|---|
| Term | 90 days to 6 months |
| Interest rate | Prime + 2-4% |
| Fees | 1-2% of loan amount |
| Security | Your current home |
| Amount | Up to 80% of current home equity |
Cost Example
For a home with $500,000 in equity, borrowing $400,000 bridge:
| Cost Component | Amount |
|---|---|
| Loan amount | $400,000 |
| Interest (90 days at 8%) | ~$8,000 |
| Fees (1.5%) | $6,000 |
| Total cost | ~$14,000 |
When Bridge Financing Makes Sense
- Your current home is highly saleable (location, condition, price point)
- You’re competing against multiple offers
- The home you want is rare or exactly what you need
- The cost is worth the certainty
- You can’t afford to lose the opportunity
When to Avoid Bridge Financing
- Your current home has selling challenges (price, condition, market)
- You’d be financially stretched carrying both properties
- The property you’re buying isn’t irreplaceable
- Bridge costs would be substantial relative to your equity
Coordinating Both Transactions
The ideal scenario: sell and buy simultaneously with aligned closing dates.
Timeline Strategy
Week 1-2: List your current home, start viewing properties Week 2-4: Receive offers on your home while continuing to view Week 3-5: Accept offer on your home with 30-45 day closing Same time: Make offers on your new home subject to your sale completing
Aligning Possession Dates
Best case: Both transactions close the same day or within a few days.
Options if dates don’t align:
| Scenario | Solution |
|---|---|
| Sell before buy closes | Negotiate extended possession (rent back) from your buyer |
| Buy before sell closes | Bridge financing or negotiate early possession from seller |
| Gap between | Short-term rental, stay with family, or storage + hotel |
What “Subject to Completion” Means
Some sellers want your offer subject to completion of your sale, not just accepting an offer. This means:
- Your sale must actually close (funds transferred)
- Risk that your buyer backs out, collapsing your purchase
- Longer uncertainty period
- Less attractive to sellers
Negotiate for “subject to removal of subjects on your sale” rather than completion when possible.
Real Scenarios
Scenario 1: Multiple Offers (Challenging)
You’re one of 5 offers. Your offer is subject to sale; others aren’t.
Likely outcome: Your offer won’t be selected unless significantly higher price compensates.
Strategy: Consider bridge financing if you really want this property.
Scenario 2: Slower Market (Favorable)
Property has been listed 30+ days. Your offer is subject to sale but you’re the only buyer.
Likely outcome: Seller may accept, especially with time clause protection.
Strategy: Negotiate reasonable terms; don’t overreach on price reduction.
Scenario 3: Your Home Has an Offer (Strong Position)
You have an accepted offer on your home with subjects being removed in 5 days. You make an offer subject to that sale completing.
Likely outcome: Much more attractive to sellers—you’re nearly a “firm” buyer.
Strategy: Emphasize the strength of your position; timeline is short.
Scenario 4: Unique Property (Bridge Worth Considering)
The home is exactly what you want—rare combination of features, location, price. Multiple interested parties.
Likely outcome: Subject-to-sale probably won’t win.
Strategy: Bridge financing to compete with firm offers. The cost is worth it for the right property.
When to Walk Away
Subject-to-sale doesn’t work in all situations:
Don’t use subject-to-sale when:
- Competing against multiple unconditional offers
- Hot market with quick sales
- You’re not confident your home will sell quickly
- Seller explicitly says no conditional offers
- You can’t handle the time clause pressure
Better alternatives:
- Sell first, rent temporarily
- Bridge financing for the right opportunity
- Accept that you may not win every offer
Key Takeaways
- Subject-to-sale offers face resistance because they create uncertainty for sellers
- Time clauses (24-72 hours) allow sellers to accept other offers if you can’t commit
- Pre-listing your home is the most effective way to strengthen your position
- Bridge financing eliminates conditions but adds cost ($10,000-$25,000 typically)
- Shorter subject periods and stronger terms help compensate for the conditional nature
- In competitive situations, subject-to-sale offers often lose to firm buyers
Frequently Asked Questions
Will sellers in Vancouver accept subject-to-sale offers?
It depends on market conditions and your specific situation. In competitive markets with multiple offers, subject-to-sale offers typically lose to unconditional buyers. In slower markets or for properties that have sat longer, sellers may accept—especially with time clause protection. Having your home already listed and showing activity significantly improves your chances.
How much does bridge financing cost in Vancouver?
Bridge financing typically costs 1-2% in fees plus interest (prime + 2-4%) for the loan period. For a $400,000 bridge loan for 90 days, expect total costs of $12,000-$20,000. Costs vary by lender and your financial profile. Get quotes from multiple lenders before deciding.
Can I make an offer on a home before selling mine without subject-to-sale?
Yes, with bridge financing or if you can carry both properties simultaneously. Some buyers purchase first, then list their home—but this creates significant financial risk if your home takes longer to sell than expected. Only do this if you can comfortably afford both mortgages for an extended period.
What happens if I can’t sell my home in time?
If you have a subject-to-sale clause and can’t sell within the specified period, you can withdraw from the purchase and get your deposit back. If you used a time clause and couldn’t remove subjects when triggered, the seller moves on to the other buyer. If you bought without conditions (via bridge), you now own two properties and need to sell one.
Should I sell my home first before looking for a new one?
Selling first eliminates timing risk and makes you a stronger buyer, but you’ll need temporary housing if you don’t find a new home quickly. Many buyers prefer to start the process simultaneously—listing their home while beginning to view properties—to minimize the gap. Your comfort with risk and the market conditions should guide your decision.
Work with Rain City Properties
Coordinating a sale and purchase simultaneously is one of the most complex real estate transactions. The timing, negotiation, and strategy required to make it work smoothly takes experience—and having worked both sides of these transactions for 20 years, Greyden Douglas knows how to structure deals that protect your interests.
From determining whether subject-to-sale is viable for your situation to coordinating possession dates across both transactions, having one agent handle both sides simplifies the process and ensures your interests are protected throughout.
Contact Greyden Douglas directly at (604) 218-2289 or book a call to discuss your buying and selling strategy.
