Buying a Property – What Are Conditional and Unconditional Offers?
If you are looking to buy a house for sale in Canberra, you have probably heard the terms “conditional” and “unconditional” offers or contracts. Understanding what these both mean can be vital to a successful and seamless transaction. At PRDNationwide, we have helped thousands of happy home-buyers secure properties for sale in and around Canberra, and we strive to provide a superior level of customer service and honest, expert advice. Let’s take a look at the differences between conditional and unconditional offers to help you in your home buying journey.
What is a Conditional Offer?
Common in a sale via private treaty, buyers are able make an offer that is subject to certain “conditions”. Essentially this means the offer to buy the property home can be retracted in the instance where the stipulated requirements are not met. These conditions can vary greatly, and may include such things as:
- Finance – buyers will often make an offer subject to obtaining finance for the property.
- Building or Pest Inspections – an offer can be made on the basis that inspection reports from a professional third party reveal no hidden issues.
- Settlement – buyers may wish to have a longer settlement in order to sell a previous home.
- Repairs and maintenance – in cases where a buyer would like an owner to repair a certain part of the home.
While buyers can make a conditional offer, a seller is within their rights to negotiate any conditions and they are under no obligation to accept the terms if they believe they are unreasonable.
Including conditions in an offer can provide protection to the buyer, because if the conditions aren’t met, the buyer is free to withdraw their offer. If the conditions are met, the buyer must go through with the completion of the sale.
What Is an Unconditional Offer?
An unconditional offer is an offer that is made without any conditions, meaning the buyer is obliged to purchase the property once the seller accepts. Most auction offers are considered unconditional, except in situations where the buyer has previously negotiated with the vendor. Before making an unconditional offer or bidding at an auction, buyers must be completely sure that they want to purchase the property and that they have the necessary unconditional finance approvals in place.
Making and Offer on a Property
Deciding on what to offer and whether to include certain conditions can be difficult, so before you make an offer, there’s a few things you need to consider. Make sure you understand the value and growth of the wider property market, as well as the suburb and neighbourhood. Also ensure you include any conditions that you believe are necessary, especially in an older home you might want to make sure a building or pest inspection is carried out prior to completion of the sale.
If you want to secure your dream property for sale in Canberra, it’s important that you have a sound understanding of the terms of the contract as well as any other special conditions.
The team at PRDNationwide are experienced and knowledgeable Canberra real estate agents, if you need professional advice or if you are looking for high quality properties for sale in Canberra, get in touch with us today online, or by calling (02) 6262 5232.