Jun 14 | Posted by Barry-

When deciding on a home purchase, there are two types of offers you can make: a conditional offer and an unconditional offer. Depending on the purchase, the buyers may opt for a conditional offer. These can be short term (waiting for mortgage financing or home inspection) or long term (waiting for the buyer’s current property to sell).
 
Unfortunately, depending on market conditions, putting in a conditional offer may result in losing out on your dream home. In times of the current high demand, buyers are often advised to place condition-free-offers when competing against another party. However, since no one wants to risk purchasing an uninspected house or not having funds available, consulting not only your real estate agent, as well as real estate lawyer (to be aware of any risks) is a good idea.
 
Keeping that in mind, there are ways to minimize your risks, while at the same time enhancing your offer, such as:
 
  • Have the home pre-inspected before you purchase.
  • Pre-qualify yourself for mortgage financing with a major lending institution well in advance, so you will be ready when you need to make an offer. Most often, financing approval is subject to an appraisal. If you have been approved but have some concern that the home may not appraise for the price offered, it would be advisable to either ask your lender to appraise the property prior to presenting any offer or insert a condition which clearly sets out that a non-condition mortgage commitment must be received.
Attractive homes sell fast, either immediately receiving better than market price offers, or multiple offers. The clear message is to be prepared in advance for the moment that your dream home appears on MLS, but remember not to get caught up in excessive over bidding. 
 
Need some advice on structuring your offer? You know who to call!