When buying or selling real estate in Edmonton, St. Albert, or Sturgeon County, one of the most complex decisions homeowners face is whether to make their sale conditional on buying another home. This scenario—often called a home sale contingency—can protect sellers from being left without a place to live while ensuring smooth transitions between transactions. However, it also comes with specific risks and market implications.
What Does “Conditional on Buying” Mean?
In Alberta real estate, a seller may accept an offer from a buyer but include a condition that their sale only proceeds once they have successfully purchased another property. According to the Canadian Real Estate Association (CREA) and guidance from REALTORS® licensed in Alberta under the Real Estate Council of Alberta (RECA), these conditions must be clearly defined in the purchase contract to avoid disputes.
Benefits of Selling Conditional on Buying
Homeowners in regions such as Edmonton and St. Albert may find this approach appealing for several reasons:
- Security: Ensures you won’t be pressured to move out before finding suitable new housing.
- Financial Stability: Allows time to align mortgage financing and down payments between transactions.
- Reduced Stress: Gives peace of mind, particularly for families looking to stay within a specific neighbourhood or school district.
Drawbacks of a Home Sale Contingency
Despite its benefits, there are some disadvantages worth considering:
- Reduced Buyer Appeal: Some buyers may prefer properties with fewer conditions, decreasing your pool of potential offers.
- Market Sensitivity: In a competitive Edmonton housing market, conditional offers may be less attractive to sellers facing multiple bids.
- Limited Negotiation Power: Buyers may use your dependency on another purchase as leverage in negotiations.
Alternatives to Selling Conditional on Buying
If you’re hesitant to rely on a condition, there are a few strategic alternatives your REALTOR® might suggest:
- Bridge Financing: Short-term financing allows you to purchase your new home before your current one sells.
- Rent-Back Agreement: Negotiate to rent your sold home for a short period while finalizing your next purchase.
- Longer Possession Dates: Set flexible possession terms to allow time to secure your next home.
Professional Guidance from Local REALTORS®
Because every transaction and market condition is unique, working with a qualified Alberta REALTOR® is essential. REALTORS® who specialize in Edmonton, St. Albert, and Sturgeon County real estate can assess your financial position, evaluate local demand, and determine whether a conditional sale aligns with your goals. The CREA registry can help you locate licensed real estate professionals in your area.
Final Thoughts
Selling your property conditional on buying another can provide valuable protection during transitional phases, but it’s not a one-size-fits-all approach. A trusted REALTOR® can develop a tailored plan that balances timing, market trends, and financial requirements. In Alberta’s evolving real estate markets—from urban Edmonton to rural Sturgeon County—the key to success lies in strategic planning and professional advice.
