6 Types of Real Estate Sales

Know when to hold, know when to react.

Understanding the 6 types of real estate sales and how the property's status can convert to a final sale or be put back on the market can help buyers and sellers jump on a deal. Whether you are buying your first home or preparing to sell, understanding these different sale types can help you make informed decisions quickly. Sometimes the early bird watching a listing status gets the house.

We watch Pillar 9 for our clients to see if there is a way for them to win over a listing if their first offer was not chosen. There are opportunities for back-up offers for certain types of sales. Once a listing changes status from pending to sold, the sale is final and titles and paperwork are sent to the lawyers for closing.

Straight Cash Sale

Typical status change with no conditions: 1-2 days

Typical status change with a few conditions: 7-14 days

A cash sale is the fastest type of real estate transaction because there is no mortgage financing involved. If a buyer does not need a mortgage, it shortens the transaction time if the buyer does not require the extra conditions from a lender. A straight cash sale with no conditions is one of the strongest types of offers, usually used in a bidding war. You can sometimes win the negotiation by offering a larger deposit quickly.

Pending Sale

Typical status change from pending to sold: 7-14 days

This is the most common type of sale in Alberta. The seller has accepted an offer, and the agreement is subject to conditions such as financing, a home inspection, or other agreed-upon terms. The seller may not be accepting other bids, as they are happy with the offer they chose. Once all conditions are removed, the sale becomes firm and proceeds to closing. When the sale is final, the status changes from pending to sold.

Time Clause Sale (48 or 72-Hour Clause)

Typical status change: No set date

A time clause sale closing depends on all contingencies being satisfied. While the hopeful buyer works their way through all their conditions, a seller can keep the listing open to other offers. If a higher offer comes in before the first buyer has the chance to work through their conditions, the first buyer receives either 48 or 72 hours to remove their conditions. If conditions are not removed in that window, the seller may proceed with the better offer and terminate the first agreement according to the time clause provision.

Distressed Sale

Typical status change: As soon as possible

A distressed sale is not usually identified on a public MLS listing, so buyers may not realize a property is being sold under financial pressure. Sometimes clues are found in the listing agent's remarks on Pillar 9 or when reviewing the property's title and registered interests.

When working with buyers interested in distressed sales, we review the property's price history, title, registered liens, and days on market to identify opportunities where a seller may be more open to a lower offer and a quick sale. Some distressed sales also come with firm possession or closing dates, so buyers need to be ready to move quickly once terms are agreed.

If you are a seller with a property that might be in distress, contact us as soon as possible. We have great marketing and sales strategies that work fast to get you out and on top of the debt before it goes too far.

Judicial Sale

Typical timeline: works with the court schedule

A judicial sale involves a property owner not paying their mortgage and the lender going through the courts to recoup debts. It is identified on Pillar 9 through reviewing ownership (Court of King's Bench) and reviewing the title to see if the property is salvageable. These homes are generally sold as-is, and the courts do not accept any conditions on the buyer's offer. The timeline on these types of sales requires patience and fortitude.

Foreclosure

Typical timeline: works with the court schedule

When a judicial sale listing has not found a buyer, the lender may take title of the property directly through more court proceedings. The lender may then remove the previous owner through the sheriffs and then relist the property for sale. Because these homes often sit vacant for a period before relisting, buyers should budget extra time and money for inspections and repairs.

Closing remarks

As your realtor, our recommended strategy will change depending on the type of sale and the listing status. If you have questions about a property's status, what your home is worth or how to sell your home quickly, contact us today.