What is the difference between a firm offer and a conditional offer?
Clickbait: Firm Offer or Conditional Offer — Which Offer Will Make You Richer When Selling Your Milton Home?
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If you want a fast, clean sale in Milton, ON, you must understand the difference between a firm offer and a conditional offer. Get this right and you keep control. Get it wrong and you risk delays, lost buyers, or legal headaches. Read this and act.
Why this matters for Milton home sellers
Milton is hot. Buyers commute to Toronto, families want bigger yards, and multiple-offer situations are common in desirable neighbourhoods like Old Milton, Dempsey, and Timberlea. In that environment, the type of offer matters as much as the price. Sellers who know how to evaluate firm offers vs conditional offers get higher net proceeds and fewer surprises.
Firm offer vs conditional offer — plain language
- Firm offer (unconditional): The buyer makes an offer with no “subjects” or “conditions.” When they sign, they commit to buy the property on the terms stated. Closing proceeds unless something extraordinary happens.
- Conditional offer (subject to): The buyer’s obligation to close depends on one or more conditions being satisfied or waived within a set period. Common conditions: financing approval, home inspection, sale of buyer’s current home.
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How conditional periods work in Milton (and Ontario)
In Milton, conditional periods are enforced the same way they are across Ontario. The Agreement of Purchase and Sale will list the condition and a deadline — typically 5 to 10 business days for financing or inspections, sometimes longer if the buyer needs to sell their home. If the condition isn’t fulfilled by the deadline, the buyer can typically remove the condition in writing (meaning they’re committed) or they can cancel without penalty.
Why timing matters in Milton: buyers often arrange inspections and financing quickly, but during busy springs or in multiple-offer scenarios, a 7–10 day condition can mean you miss a stronger firm offer from another buyer.
Common conditions Milton sellers see
- Financing (Subject to Mortgage Approval): Most common. Buyer must secure a mortgage. If rates spike or the buyer isn’t pre-approved, the condition can kill the deal.
- Home inspection (Subject to Inspection): Buyer hires an inspector. If major defects appear, the buyer may request repairs or walk away.
- Sale of buyer’s property: Buyer needs to sell their home first. These offers are risky and can stall your timeline.
- Condominium status certificate review: For condos in Milton, buyers check the status certificate before committing.
- Lawyer review: Less common, but used by buyers who want a lawyer’s sign-off.
Which offer is better for a seller in Milton?
Simple answer: a firm offer is stronger. It reduces uncertainty, shortens closing timelines, and gives you leverage with your lawyer and mortgage holders. But context matters.
When a conditional offer may still be worth it:
- It’s a high price that outweighs the risk.
- The condition is minor and easy to remove (e.g., a quick financing confirmation backed by lender pre-approval).
- You have time and are prepared to manage backup offers.
When to reject a conditional offer in Milton:
- Buyer is subject to sale of another home and you need a guaranteed closing.
- The conditional timeline is long and uncertain.
- The condition is vague or open-ended.
Real examples — Milton market scenarios
Example 1 — Multiple offers, seller chooses firm offer
You list a 3-bed in Old Milton. You get two offers on Monday: one firm at $920,000 and one conditional at $940,000 (subject to financing and 10-day inspection). The firm offer reduces your risk. If you rely on the conditional offer, it could collapse and you end up with nothing. Unless you prefer gambling, accept the firm offer or use it to negotiate with the conditional buyer to remove the subjects.
Example 2 — Conditional accepted with protections
A buyer wants to include a 5-business-day financing condition. You accept but set clear deadlines, ask for a higher deposit, and keep the home on the market for backup offers. The buyer removes the condition on day 4. You’ve protected yourself while keeping momentum.
Example 3 — Buyer needs to sell their house
A buyer submits an offer contingent on selling their home. That’s high risk in Milton’s fast market. Counter with a firm timeline or demand a larger deposit and a shorter sale-of-home condition window. Or reject and find a buyer who’s ready now.
Practical seller tactics — make conditional offers work for you
- Demand solid proof: lender pre-approval letters, proof of funds for deposit.
- Shorten conditional timelines: ask for 5 business days instead of 10.
- Ask for a larger deposit: it shows commitment and reduces the chance the buyer walks.
- Keep marketing open: accept backup offers so you don’t lose momentum.
- Use pre-inspections: offer your inspection report to buyers to reduce inspection conditions.
- Work with a skilled listing agent: they screen buyers and negotiate removal of conditions. (Tony Sousa in Milton does this — see contact below.)
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Legal and financial risks to understand (Ontario specifics)
- Removing a condition is often done in writing; once the buyer removes it, the offer becomes firm and binding.
- If a buyer breaches (fails to close) after removing subjects, the seller may keep the deposit and pursue damages, but legal steps cost time and money.
- Deposit amount: Common practice in Ontario is 5% of purchase price, but it varies. Larger deposits discourage backing out.
- Land transfer tax: Sellers don’t pay Ontario land transfer tax—buyers do—but it affects buyer affordability, so be mindful of pricing.
How a local expert changes outcomes
A strong Milton agent negotiates firm terms or structures conditional offers to favor the seller. That means:
- Screening buyers for mortgage readiness.
- Running strategic open houses and private showings to attract buyers who will deliver firm offers.
- Drafting tight timelines and clear condition language in the Agreement of Purchase and Sale.
Tony Sousa is a Milton real estate agent who positions sellers to get firm offers or the cleanest conditional offers possible. He provides seller-side checklists, pre-listing advice, and market-driven pricing strategies that minimize conditional risk.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Quick checklist for sellers in Milton who want firm offers
- Price to create interest, not to chase an individual buyer.
- Require proof of funds and pre-approval with every offer.
- Consider pre-inspections or full disclosure to reduce inspection conditions.
- Ask for a larger deposit if the buyer requests long conditions.
- Keep marketing active and accept backup conditional offers.
Final verdict — what to do today
If you’re selling in Milton and you can get a firm offer at a fair market price, take it. If the conditional offer is higher, get proof, shorten conditions, and protect yourself with a bigger deposit and backup plan. Don’t assume the highest dollar always wins — certainty and execution matter.
FAQ — General Questions About Selling a Home in Milton, ON
Q: What’s the biggest difference between a firm and conditional offer?
A: A firm offer has no conditions; the buyer is committed. A conditional offer depends on specific results. Firm = certainty. Conditional = depends.
Q: How long are condition periods in Milton?
A: Typically 5–10 business days for financing or inspection. Sale-of-home conditions may be longer. Always confirm timelines in the Agreement of Purchase and Sale.
Q: Can a buyer withdraw a conditional offer?
A: If the condition isn’t waived or removed by the deadline, the buyer can usually withdraw without penalty.
Q: What’s a typical deposit in Milton?
A: Deposits vary. 5% of the purchase price is common in Ontario, but buyers can offer more or less. Bigger deposits show stronger commitment.
Q: Does a seller pay land transfer tax?
A: No. Buyers pay land transfer tax in Ontario. Sellers should still price competitively considering buyer affordability and taxes.
Q: Should I accept an offer that’s subject to sale of the buyer’s home?
A: Be careful. These offers carry higher risk. Consider demanding a shorter timeline, a larger deposit, and the right to continue marketing the property.
Q: How can I get more firm offers in Milton?
A: Price correctly, stage the home, require pre-approval with offers, and hire an agent who qualifies buyers and negotiates tight terms.
Q: What happens if a conditional buyer removes their subjects and then can’t close?
A: Once subjects are removed, the offer is firm and binding. If the buyer fails to close, the seller can pursue legal remedy and may keep the deposit, but enforcement can be lengthy.
Q: How do condos differ in Milton?
A: Condo buyers will typically include a status-certificate review condition. Ensure your condo documents are available and disclose building issues upfront to reduce surprises.
Want help evaluating offers for your Milton home?
Get a clear, direct evaluation of any offer in 24 hours. I’ll tell you whether the offer is strong, how to tighten conditions, and how to get a cleaner, faster sale. Contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
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