In Real Estate, What is a Conditional Offer?

In real estate, a conditional offer is a condition of sale that is agreed upon by both the buyer and the seller. The time frame set is important when it comes to conditional offers because if the condition isn't met within the specified time, the agreement is void and the buyer receives the deposit back. Conditional offers can be tricky, but may be a good option in some cases. A short term conditional offer such as to obtain approval for mortgage financing or for a home inspection can work out well as it doesn't tie up the property for long. However, a conditional offer that involves a long term or indefinite commitment such as a condition based on the buyer's current property selling may be great for the buyer, but not so great for the seller. The seller is still free to try to sell the home while the conditional offer is on the property and this may be a strong incentive for the buyer to fulfill the condition. Still, a real estate agent may not want to show a property that has a cond ... more