Should I accept a conditional offer?
Should I accept a conditional offer? Read this first — one simple move could cost you thousands or lock in a faster, safer sale.
Sell Smart in Milton: Why this question matters
You’re selling a home in Milton, Ontario. Buyers are active. Prices are important. Every offer looks different, and the one with conditions often looks tempting: it gives you a signed contract and a deposit. But that contract can vanish if the buyer cancels during the condition period. For sellers who want certainty and the best price, conditional offers are a negotiation, not a yes-or-no checkbox.
I’m Tony Sousa — Milton realtor — and I’ve closed hundreds of deals across this market. Below is a clear, step-by-step guide you can use today to evaluate conditional offers, reduce risk, and negotiate better terms.
What is a conditional offer in plain language
A conditional offer is an offer to buy your home that only becomes firm if the buyer’s listed conditions are satisfied within a set time. Common conditions in Milton and across Ontario include:
- Financing (mortgage approval)
- Home inspection
- Sale of the buyer’s current property
- Lawyer review or title search
If the buyer doesn’t remove the condition in the timeframe, they can walk away and typically get their deposit back. That’s why accepting a conditional offer without strategy is risky.
Local market context: Milton, ON matters
Milton is a high-demand town in Halton Region. Commuters to Toronto, growing families, and investors all shop here. That means:
- Buyers can be motivated but picky. Some need financing or must sell another home.
- New build inventory affects resale offers; some buyers balance builder timelines with resale timing.
- Offers with conditions are common — especially in price ranges where buyers need financing approval.
Sellers who understand this local buyer mix can turn conditional offers into wins.
The real downside of accepting a conditional offer
Be honest. Conditional offers give you exposure to risk:
- Deals fall apart in the condition period — leaving you back on market.
- Time lost while you can’t market aggressively reduces leverage.
- Back-and-forth extensions invite lower offers later.
- If your home is already under contract, other interested buyers cool off.
Accepting a conditional offer without protections means you trade a lot of certainty for a little short-term comfort.
When a conditional offer can be good for you
Accepting makes sense when the conditions are low-risk and the buyer is strong. Examples:
- Buyer has mortgage pre-approval letter from a major lender.
- Inspection condition is short and buyer accepts a limited scope (major items only).
- Deposit is larger than average and held in trust.
- Closing date matches your plans and you have a backup strategy.
If the conditional terms reduce uncertainty, the offer can be a win.
How to evaluate buyer strength — a quick checklist
Before you say yes, get these items in writing and verified:
- Recent mortgage pre-approval letter with lender contact
- Proof of down payment funds (bank statements)
- Clear conditional removal timeline written in the offer
- Identity and contact info for buyer’s lawyer
If you can’t verify these quickly, don’t accept the risk.
Negotiation moves that protect sellers (and get you better price)
Flip the script. Treat a conditional offer like leverage, not a gift. Use these direct, high-impact moves.
1) Shorten the condition period
Ask for a 24–48 hour subject removal window, not a week. Short windows reduce the buyer’s ability to drag their feet.
2) Increase the deposit
Ask for a larger deposit held in the brokerage trust account. Serious buyers can and will put more down.
3) Tie the condition to a clear deadline and a firm consequence
If conditions aren’t removed by the deadline, the offer is null and void — and you can immediately accept another offer.
4) Ask for financing proof on or before acceptance
Don’t accept “subject to financing” without seeing a solid pre-approval that names the property or includes buyer income details.
5) Limit inspection scope
Allow an inspection only for major issues (structural, mechanical), not cosmetic findings. Or accept an inspection but make repairs negotiation limited to a dollar cap.
6) Counter with a partial waiver
If buyer needs to sell their home, require a firm closing date or a non-refundable portion of the deposit if they don’t close.
7) Keep marketing and accept backup offers
Make it explicit in your counter that you retain the right to entertain backup offers. If you get a strong backup, the conditional buyer will often remove conditions or step up.
What to include in your counteroffer to win and protect
- Short condition removal timelines (24–72 hours)
- Larger, refundable-to-non-refundable deposit milestones (e.g., partial becomes non-refundable on condition removal)
- Firm closing date and clear consequences for delay
- Proof of financing and proof of funds attached to offer
- A clause allowing seller to accept backup offers while conditions are in place
These terms create pressure and separate buyers who are committed from those who aren’t.
Legal and procedural safeguards in Ontario (Milton) — what your lawyer needs to check
Always have a real estate lawyer review the agreement. Key items to watch:
- Exact wording of subjects (conditions). The more precise, the better.
- Irrevocability period wording — how long the buyer must hold the offer open.
- How and where the deposit is held and what conditions return it.
- Remainder of the agreement: closing date, adjustments, inclusions/exclusions.
Your brokerage and lawyer should coordinate to make sure legal technicalities don’t let a buyer slip out.
A real-world negotiation playbook you can use today
1) Receive an offer with conditions.
2) Verify buyer’s mortgage pre-approval and proof of funds immediately.
3) Counter with a 48-hour condition removal, larger deposit, and a backup clause.
4) Continue marketing quietly and invite backup offers.
5) If buyer removes conditions and deposit clears — proceed to firm sale.
6) If buyer doesn’t remove — terminate and move to backup or market.
This playbook converts uncertainty into leverage.
Examples: What I do for Milton sellers (actionable and tested)
- I demand proof of mortgage pre-approval before recommending to accept a condition.
- I draft counters that convert parts of the deposit to non-refundable on condition removal.
- I insist on short subject-free periods so the seller can re-list fast if needed.
- I keep marketing visible to capture backup buyers.
These tactics shorten sales cycles and protect sellers from last-minute collapses.
Pricing strategy vs conditional offers — don’t confuse them
If your home is priced competitively, you’ll get firmer offers. Conditional offers often show up when buyers want to protect themselves on higher-priced properties or when inventory grows. Price to attract firm offers, not conditional ones — that’s the fastest path to a clean sale.
When to walk away from a conditional offer
Say no if:
- The buyer can’t prove financing.
- The inspection condition is open-ended.
- The deposit is tiny and fully refundable.
- The timing doesn’t match your move plans and buyer wants multiple extensions.
It’s better to wait for a cleaner, firmer buyer than to accept a shaky deal that costs you time and money.
Closing: the direct answer
Should you accept a conditional offer? Only if you get the protections you deserve. Verify financing. Shorten the condition period. Increase the deposit. Keep marketing and demand the right to backup offers. If those protections aren’t possible, don’t accept a conditional offer just because it’s on paper.
If you want a quick, practical review of a conditional offer you’ve received, send it to my team. We’ll verify the buyer’s proof of funds, suggest a counter, and outline immediate next steps.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Offers & Negotiation in Milton’s Housing Market
Q: What is the most common condition on offers in Milton?
A: Financing and home inspection are the two most common. Many buyers need mortgage approval or want an inspection to check major systems.
Q: How long can a buyer keep conditions in the offer?
A: There’s no fixed universal period. Common practice is 24–72 hours for quick deals, up to 7–10 days when buyers need more time. Shorter is better for sellers.
Q: Can I accept a conditional offer and keep marketing my home?
A: Yes. You can accept a conditional offer and still seek backup offers. Make that clear in your counter. It gives you options if the deal falls apart.
Q: What happens if the buyer doesn’t remove a condition by the deadline?
A: The offer typically becomes void, and the buyer’s deposit is returned, unless the contract specifies otherwise. That’s why you must include clear deadlines and consequences.
Q: Can I ask for a bigger deposit if offer is conditional?
A: Absolutely. A larger deposit signals seriousness and gives you negotiating leverage. It’s a standard seller protection.
Q: Should I ask for proof of financing before accepting a conditional offer?
A: Yes. Always ask for a mortgage pre-approval and proof of down payment funds. Verifying these cuts risk dramatically.
Q: If the buyer’s condition is sale of their property, how do I protect myself?
A: Require firm closing dates, non-refundable deposits upon condition removal, or a longer inspection window for buyers to prove progress on their sale. Insist on proof of offers on their property if possible.
Q: Who pays for the inspection in Milton?
A: Usually the buyer pays. Sellers can offer a pre-listing inspection to remove buyer uncertainty and attract firmer offers.
Q: Is it okay to counter a conditional offer with a firm offer demand?
A: Yes. Countering to request a firm offer, or stronger terms surrounding conditions, is a standard negotiation tactic.
Q: Should I get legal advice for conditional offers?
A: Always. A real estate lawyer ensures the wording protects you and clarifies deposit handling and timelines.
Contact for a free consultation: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
If you want a free, immediate checklist for handling conditional offers in Milton, reply to this post or email the offer details. I’ll respond with next-step advice within 24 hours.
