The real estate market in early 2022 was rocky for many prospective buyers. Some were making offers on homes with minimal (or no) conditions because of the high demand and historically low inventory across Canada. Since then, the market has shifted slightly; there are less active buyers in many provinces, which means less competition. 

With this shift has come the return of conditions. Although conditions are ultimately there to protect the buyer, they can come at a price. Including the right conditions in your offer could be the difference between a homeowner accepting or looking elsewhere. Here are some of the most common conditions that the experts at Zoocasa suggest you can include or drop from your offer. 

Common Conditions to Include in Your Offer

Selling of the buyer’s home

If you are a current homeowner that is planning to sell but found a home you want to put an offer on first, make sure to include this condition. Buyers that are selling their own home will often use the profits from the sale of their property to secure their next home, so this tends to be a common condition. In 2021, homes were selling quickly and many went without this condition. 

Now that homes are spending more time of market, this condition can protect buyers. However, it can come with a stipulation; if the sellers receive another offer, the buyer has a period of time to either drop the condition or sell their current home, or the sellers can proceed with the new buyer.

Financing 

This condition ensures your offer is only valid if you secure approval for the required mortgage. If your mortgage application is rejected or the appraisal is too low, this condition protects you and voids your offer. 

Leaving this out could lead to losing your deposit as well as potential legal penalties, so while you can remove this to make your offer more enticing, we suggest including it unless you’ve already been pre-approved. 

Home inspection 

This allows prospective buyers to hire a professional (at their own expense) to review the home for things like plumbing, electrical systems and more prior to firming up their offer. If anything concerning is raised during the inspection, the buyers can ask the sellers to make repairs or to change the selling price to accommodate for the work needed. 

An inspection is a good way to confirm if the house is in good condition, and the money spent is a drop in the water compared to what could happen if there were issues you didn’t know about.

Escape clause

An escape clause allows one party involved in the transaction to back out under specific circumstances, often the seller. If you’ve made an offer on a house and there is an escape clause, it means that a third party can make an offer even after your conditional offer has been accepted, and the seller can accept, giving you a specific amount of time to complete your conditions and/or the transaction. 

If you’re able to complete your deal in that period of time, then the seller cannot accept the other offer, but failing to do so means they can move on with the third party.

Common Conditions to Drop From Your Offer

Fixtures and personal items 

Fixtures and personal items can include things such as ceiling lights, drapes or curtains and bathroom mirrors. Buyers include this condition if they are interested in any of the removable items they see in a home. If sellers wish to keep these items, however, as they are either of actual or sentimental value, then removing this condition can put you in a more favourable light in their eyes.

Repairs

Repairs to drywall, loose floorboards, carpet, fences or furnishings are commonly included as a condition in offers. You can make the offer conditional on the seller repairing these by a certain date, or by closing time. 

If the seller is unable to complete these then you can include your own amount to cover the costs that they would only receive if they are completed by an agreed upon date. Removing this again can make the offer more enticing, particularly if sellers are looking to move quickly.

The conditions you choose to include in your offer may vary depending on what you or the seller are looking for, what the market looks like and how many other parties are interested in the property. Zoocasa has qualified real estate agents across Canada that can help you navigate your local market and negotiate to get you the home of your dreams. 

Download the free buyer’s guide today to get you started.