Firm vs. Conditional Offers


What’s the difference between a firm offer and a conditional offer?

When it comes to making an offer to purchase a home, one of the most misunderstood terms used by buyers is a “firm offer”.

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Some people believe that a “firm” offer means they do not include the sale of their own house as a condition. A firm Offer to Purchase actually means the buyers are prepared to purchase the home without any conditions, including home inspection conditions and financing conditions. 

A conditional Offer to Purchase means there are one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing”, “subject to obtaining insurance” or “subject to sale of buyer’s existing home”. The home is not sold firm until the prospective buyer meets these conditions and notice is given to the seller.

The Offer Process

An Offer to Purchase is presented to a seller who may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, closing date, or any number of variables. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.

Multiple Offers

Sometimes there may be more than one offer on a property at the same time, which is know as a Multiple Offer situation. Talk to your Real Estate Sales Representative to determine the best strategy in this situation.

Regardless of how many offers are being presented to the Seller, you will require current market information and assistance in drafting your offer. You will need a Real Estate Professional. A Real Estate Professional will communicate your Offer to Purchase to the seller, or the seller’s representative, on your behalf. A Real Estate Professional can guide you through this process.

If you require more information on submitting Offers to Purchase, or have any questions about Durham Region real estate in general, please contact is via the form below.

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