Conditional offers. They’re a pretty standard practice in the real estate industry. But agents nowadays are suggesting that perhaps an unconditional offer is best– if you’ve found your dream property.
With the bidding wars going on in the Toronto real estate market, a condition-less offer could give you that extra edge you need to ensure you get the home you’re vying for.
So what does that mean? No financing condition? No HOME INSPECTION? That sounds like a risky way to buy a home. What if you can’t afford it or something is terribly wrong with the home you didn’t know?
A senior consultant at Invis Mortgage Brokerage says you can get your financing lined up by pre-qualifying for a mortgage. You can also bring along a home inspector to check out the homes with you. But that could get expensive when you don’t know if you want to purchase.
One property that a conditional offer wouldn’t likely hinder the likeliness of you winning the property is new condominium construction. With rising inventories, builders are likely more flexible with the type of offers they’re willing to accept.
Maybe you’ve been reading the real estate news and think it’s only a matter of time before it’s a buyer’s market again, but think again. An economist at TD, Paul Gauthier, says:
“As we head into the later part of this year, heading into next year, given the current momentum we have in listings and construction I would think that by 2011 it will be slightly favourable to buyers … [but] not dramatically so.” The National Post
So waiting out the market could be a risky move as well. Conditions may not become far more favourable to buyers– at least not as favourable as they’re expecting.
Really, the “no conditions” offer is something that has to be taken with a grain of salt. If you’ve found the perfect home, then you might want to consider it. But it’s not advisable to start putting this type of offer in on any home. Make sure you have all your ducks in a row first.