What is it?
A conditional offer means that the buyer offers to buy the home from the seller as long as specific conditions (i.e. financing) are met within a specific period of time. The buyer and seller will both need to meet these conditions within the timeframe, which is usually 2-7 days, for the purchase to go through. If the conditions are not met, the offer is considered void and the deposit will be returned to the buyer.
Common Conditions
Financing: a financing condition means that the buyer must secure a mortgage/financing to purchase the home for the home purchase to go through. During the 2-7 days that the financing takes place, the goal is for the buyer to work as hard as possible “in good faith” to get approved for a mortgage.
Home Inspection: this condition allows a potential home buyer to have a home inspection from a qualified home inspector to ensure the property meets the expectations of the sale. If the home does not meet the conditions, the deal can be void.
Sale of Current Home: if a home buyer needs access to money to purchase a home, this is an important condition. It allows the home buyer a “reasonable timeframe” to sell their home in order to fund their purchase of the new home.
