Should I accept a conditional offer?
Can a conditional offer cost you the house? Read this and decide in 5 minutes.
Quick answer
Yes — but only if you treat conditions as opportunities to control risk. A conditional offer is not a rejection. It’s a tool. Used correctly, it protects you. Used poorly, it loses you the home.
What a conditional offer really means
A conditional offer means the buyer wants one or more conditions met before the sale is firm. Common conditions: financing approval (subject to mortgage), home inspection, sale of buyer’s current home, or condo status certificates. Sellers hear “conditional” and worry. Buyers see protection. Both can negotiate.
How to evaluate any conditional offer (step-by-step)
- Identify the condition type. Financing and inspection are standard. Rare or vague conditions are red flags.
- Check the timelines. Shorten them where possible (5–10 business days for financing, 5–7 for inspection). Fast timelines reduce uncertainty.
- Demand proof. Ask for mortgage pre-approval letters, proof of funds, or an inspection scope. Vague promises don’t count.
- Measure the risk. If the buyer is pre-approved and the inspection clause is limited to major defects, risk is low. If the buyer needs to sell a home first, risk is higher.
- Price vs. certainty. A slightly lower firm offer can beat a higher conditional one. Decide if certainty is worth the money.
When accepting a conditional offer makes sense
- Buyer is pre-approved or has cash. Conditions cosmetic or inspection-only. Timeline short and realistic.
- Market is slow and offers are limited. You want to sell and move on.
When to push back or counter
- Buyer needs to sell their home first. Ask for bridge financing or a back-up offer instead.
- Timelines are long or open-ended. Counter with shorter deadlines and penalties for delays.
- Conditions are vague. Counter to clearly defined, limited conditions.
How to protect the sale
- Use firm deposit and clear forfeiture terms for unreasonable delays.
- Limit condition language: define what constitutes a failed inspection.
- Add a deadline for condition removal and a clear date for closing.
Negotiation moves that work
- Convert some conditions into warranties or repairs to be completed after closing.
- Trade price for certainty: ask for a higher deposit if buyer insists on a condition.
- Keep a backup offer in hand if you accept a conditional one.
Bottom line — practical rule
Accept a conditional offer when the condition is short, certified (pre-approval or inspection scope), and risk is manageable. Reject or counter when the condition creates long uncertainty, vague outcomes, or requires the seller to hold the property too long.
For a fast, precise evaluation tailored to your property, contact local negotiation expert Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
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