What is the difference between a firm offer and a conditional offer?
Firm offer or conditional offer — which one will put more money in your pocket and less risk on your shoulders? If you’re selling a home in Georgetown, Ontario, missing this distinction costs you time, leverage, and sometimes thousands of dollars.
Quick, blunt answer
A firm offer is an unconditional purchase agreement: once signed, the buyer must complete the sale. A conditional offer contains one or more conditions (financing, inspection, sale of another property) that must be satisfied or waived before the buyer is legally bound. In Georgetown’s market, that difference changes how you price, negotiate, and accept offers.
Why this matters for Georgetown home sellers
Georgetown, Ontario has its own rhythm — commuter buyers from Toronto, local families, and investors all moving through our market. That mix means you’ll see both firm and conditional offers. Firm offers give certainty and faster closings. Conditional offers can protect buyers, but they create uncertainty for you as the seller: you can’t be sure when (or if) the sale will close. Understanding how to handle each offer type gives you control.
What a firm offer looks like (simple and decisive)
- No conditions. The buyer signs and is committed.
- Deposit is specified and becomes part of the purchase price.
- Closing date is agreed up front.
- Seller can rely on the buyer completing the purchase or suing for breach if they don’t.
For sellers who value certainty and speed — or who are juggling their next purchase — firm offers are ideal.
What a conditional offer looks like (flexible, but risky)
Common conditions:
- Subject to financing: Buyer still needs mortgage approval.
- Subject to home inspection: Buyer can negotiate repairs or back out.
- Subject to sale of buyer’s property: Buyer must sell their home first.
- Other conditions: lawyer review, appraisal, condo status certificate (if applicable).
Until those conditions are satisfied or waived, the buyer can withdraw. That makes conditional offers less reliable.
The Ontario legal backdrop (what actually enforces these offers)
Ontario uses the Agreement of Purchase and Sale (APS). Conditions included in the APS set deadlines and procedures. If a buyer doesn’t waive a condition by the deadline, the agreement can be terminated per the APS terms. Sellers should never assume conditions will be met on time.
Tip: Always check the exact wording and deadline. A poorly drafted condition shifts risk back to the seller.
How conditions affect timelines and cash flow in Georgetown
- Conditional offers delay closing and vacating timelines. If you’re buying another property in Georgetown or the GTA, a conditional buyer could blow your schedule.
- Conditional sales often take longer to clear, which affects when you receive proceeds from the sale. That matters if you need those funds to settle your next purchase.
- In a seller’s market, buyers might submit fewer conditions or waive them to win the home. In a balanced/slow market, more conditional offers appear.
How to evaluate an offer fast (practical checklist for sellers)
- Is it firm or conditional? If conditional, what are the exact conditions?
- What are the deadlines for waiving conditions?
- How big is the deposit? Larger deposits mean more buyer skin in the game.
- Are there finance pre-approvals or pre-qual letters?
- Is the closing date compatible with your plans?
- What happens if a condition isn’t waived — is there an opportunity to continue marketing the home?
Negotiation levers for sellers in Georgetown
- Ask for a shorter condition period. If a buyer needs financing, request they get a pre-approval first and shorten the waiver window to 3–5 business days.
- Increase the deposit for conditional offers. More money on the line makes buyers serious.
- Maintain active showings. If you accept a conditional offer, keep marketing until it’s firm unless you receive a better firm offer.
- Add a clause limiting “subject to sale” conditions or set a firm timeline for that condition.
Multiple offers: prioritize certainty, but watch price
When you have multiple offers, a higher conditional offer might look good on paper. But a slightly lower firm offer often wins in real value because it closes. In Georgetown’s busy pockets — near downtown, schools, and transit — buyers know competition matters. Prioritize offers that reduce risk.
Common seller mistakes that cost money
- Taking a conditional offer without protecting your schedule.
- Failing to demand proof of financing when financing is a condition.
- Accepting long condition periods.
- Letting showings stop before a condition is waived.
Each of these mistakes leaves you vulnerable to buyers who back out or use conditions to renegotiate.
How I handle conditional offers for my Georgetown clients (practical system)
I treat every conditional offer like a negotiation opportunity, not a final answer.
- Confirm buyer’s mortgage pre-approval or lender contact.
- Shorten condition deadlines where possible.
- Increase deposit and ask for a firm closing date.
- Keep properties active on the market until the condition is waived.
- Use back-up offer language in the APS so you can accept a better firm offer if one arrives.
This approach keeps leverage with the seller and avoids wasted time.
Pricing strategy tied to offer types
- Price aggressively when you want firm offers. In a seller’s market, an aggressive price will attract unconditional buyers who don’t need the safety net of conditions.
- If you expect conditional offers, build contingency into timing and negotiation. Don’t over-commit to timelines tied to the conditional buyer.
Real examples from Georgetown (what sellers actually face)
- A downtown Georgetown bungalow received two offers: one higher but conditional on the sale of the buyer’s home, and a slightly lower firm offer with a big deposit and quick closing. The seller chose the firm offer to avoid moving twice and closed in 30 days.
- A family listing near Centennial Park accepted a conditional offer with a long inspection period. The buyer used the inspection to renegotiate repairs and the deal nearly collapsed. The seller could have reduced risk by shortening the inspection window and requiring an as-is sale clause for minor issues.
When a conditional offer can be good for you
- If you need a higher sale price and a conditional buyer offers significantly more, it may be worth the risk — especially if the condition period is short and backed by pre-approval.
- If you have flexible timing and no pressing purchase, a conditional offer may be acceptable.
Always weigh the upside (price) against the downside (time and uncertainty).
Practical language to use in counter-offers
- “Waiver of financing to occur within 3 business days of acceptance, conditional on verified pre-approval.”
- “Inspection period limited to five business days; deposit increased to $X.”
- “Seller reserves right to continue showings until all conditions are waived.”
Simple, clear clauses cut risk.
Legal considerations — when to call a lawyer
This blog explains choices, not legal advice. For contract drafting, deposit disputes, or complex conditions (e.g., sale of another property), consult your lawyer. In Ontario, timing and wording in the APS matter. Don’t rely solely on verbal promises.
Why local expertise matters in Georgetown
Georgetown isn’t Toronto. Buyers, commute patterns, school districts, and price sensitivity are local. I sell here every week. I know what conditional clauses buyers commonly try, what lenders accept quickly, and how long inspection periods realistically take in this market. That experience turns offers into real closings.
Clear next steps for sellers right now
- If you have an offer pending, call your agent and run the checklist above.
- If you don’t have an agent or you want a second opinion, contact me for a no-nonsense review. I’ll evaluate offers, draft tight counter-offers, and keep your sale moving.
Contact: Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Georgetown sellers’ top concerns (short, direct answers)
What happens if a buyer pulls out of a conditional offer?
If the buyer properly withdraws because a condition wasn’t satisfied by the deadline, the APS terminates and the deposit is returned to the buyer unless the buyer breached the agreement. If the buyer attempted to waive the condition and later backs out, dispute resolution or legal action might be needed. Always involve your lawyer for deposit disputes.
Can I keep marketing my home after accepting a conditional offer?
Yes. You can and often should. Use backup offer language in your APS. That keeps your options open and protects your timeline.
How big should the deposit be?
There’s no magic number, but larger deposits show buyer commitment. In Georgetown, deposits commonly range from 5% to 10% on competitive listings. For conditional offers, ask for a higher deposit if possible.
Are firm offers more common in a hot market?
Yes. When demand exceeds supply, buyers are more willing to remove conditions to win the property. In slow markets, conditional offers increase.
Should I accept a conditional offer if it’s $20,000 higher than a firm offer?
It depends on timing and urgency. If you have time and the conditional buyer provides solid proof of financing and a short condition period, you might accept. If you need certainty, pick the firm offer.
Do inspection conditions always lead to renegotiation?
Not always. Many inspections produce minor issues. Clear inspection timelines and a list of what constitutes a major repair help limit renegotiation. Consider an “as-is” approach for cosmetic issues with a short inspection window.
How long should condition periods be?
Keep them short. Finance and inspection periods of 3–7 business days are reasonable in most Georgetown transactions. Longer periods increase risk.
What’s the best strategy if I want a quick closing?
Prioritize firm offers, higher deposits, and buyers with lender pre-approval. If you accept a conditional offer, demand short waiver windows.
Who holds the deposit in Ontario?
Typically, the deposit is held in trust by the listing brokerage or the seller’s lawyer until closing. The deposit becomes part of the purchase price.
Final thought
Control the deal. Don’t let vague conditions dictate your timeline. Whether you accept a firm or conditional offer, make decisions that protect your schedule, maximize sale proceeds, and limit surprises.
If you want a fast, no-spin review of an offer on your Georgetown property, I’ll read the APS, run the numbers, and give you a clear recommendation. Contact Tony Sousa at tony@sousasells.ca or 416-477-2620.
