Skip to content
  1. Home
  2. Spotlight
Sponsored Content

Your Sudbury real estate guide: What home sellers should know about conditional offers

This month, Sudbury Realtor Paul Corsi discusses why conditional offers are important and if they add value for sellers
SUD Spotlight_Corsi1 title image

A conditional offer is the most common offer that a seller will review and consider. However, in a seller’s market, like the one we’re in now in the Greater Sudbury Area, they come with an unquantifiable, subjective value.

“The most common conditions we see in Sudbury are home inspection and financing, both of which require 5-7 business days to fulfill,” says Paul Corsi, C.E.T and Broker of Record and Corsi Realty Inc.  “If the bank declines the financing, the deal is terminated. If the home inspector finds something glaring, a buyer might try to renegotiate the purchase price or worse, walk away.  An accepted conditional offer is fragile and far from firm.”

Should I include conditions in my offer?

It’s good practice to include conditions in an offer, even if the buyer is confident that these condition will be met, says Corsi who is also a registered Tarion Home Builder with over 20 years of experience.  It’s reassuring to all parties involved.  This is not the case in a competing offer scenario where the buyers have to stand out from the competition or risk losing their dream home.  The stakes are high and your emotions can get the best of you.

 

Updated_Corsi infographic

 

So how do you quantify the value of certain conditions?

According to Corsi, the simple answer is - you can’t.  “Last month a house was listed on the market, there were six competing offers at the time of presentation, and then it sold that very day.  There’s nothing unusual about that however, the sellers did not accept the highest price which was a staggering 8% higher than the sellers asking price, that’s $32k on a $400k property to put it in perspective. Instead they accepted the offer with the lower dollar figure, without conditions, and flipped the sold sign that very day.” 

In this case, the seller placed tremendous value in firming the deal right then and there rather than risking the loss of a sale in the hands of the buyer.

Most conditions are included for the benefit of the buyer and not the seller. It’s advantageous to consider removing conditions in order to make your offer more appealing but there are many variables to consider before making such a drastic decision. Corsi suggests talking to your agent and come up with a strategy in the event that you find yourself competing for a property, the removal of a condition or two may be the reason your offer is accepted or declined.

To stay up to date on Sudbury real estate and get buyer, seller, builder, and homeowner tips and trick, connect with Paul Corsi on Facebook, Instagram or Youtube. You can reach Paul directly by emailing [email protected] or calling 705-470-4747.