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  • Writer's pictureNeil Joseph

Is Going Without Conditions on a Purchase Offer Worth the Risk?

Updated: Mar 19

Purchase offer without conditions
Purchase offer without conditions

Buying a home is one of the most significant decisions you'll ever make. From selecting the perfect neighbourhood to crunching numbers to determine affordability, the process is both exhilarating and nerve-wracking. However, after putting in the effort to find the right property, the last thing you want is for your purchase agreement to fall through. In such situations, the question often arises: should you go without conditions in your offer? And often, this suggestion comes from your realtor. But is it truly advisable? Let's delve deeper into this topic to grasp the full extent of the risks involved.


Firstly, what exactly does it mean to go without conditions? In the realm of real estate, conditions are clauses in your purchase offer that must be fulfilled for the sale to proceed smoothly. These conditions typically encompass crucial aspects such as home inspections, financing approval, and the sale of your current home. By going without conditions, you're essentially submitting an offer without any exits in case you encounter any issues during inspection, or your mortgage gets declined.


Your realtor might advocate for this approach for several reasons:

  • In highly competitive markets where multiple offers are the norm, eliminating conditions can make your offer more enticing to sellers.

  • It simplifies the transaction process and minimizes the chances of procedural complications arising that could potentially derail the sale.

  • In bustling markets where properties are snapped up swiftly, conditions might slow down the transaction, putting you at risk of losing out to other buyers.


However, it's crucial to carefully weigh the benefits against the risks. Opting to proceed without conditions means assuming a greater degree of risk as a buyer. Without a home inspection condition, you run the risk of overlooking hidden issues with the property, which could translate into hefty repair costs down the line. Similarly, forgoing the financing condition could leave you vulnerable if your mortgage falls through, jeopardizing your deposit and possibly more. Moreover, if you're relying on selling your current home to finance the new one, omitting this condition could leave you in a precarious financial position.


So, what's the prudent course of action? Ultimately, it hinges on your individual circumstances and risk tolerance. If you find yourself in a fiercely competitive market and are confident in your ability to secure financing, foregoing conditions may appear to be a strategic move. However, if you harbour any reservations about the property or your financial situation, exercising caution and including appropriate conditions in your offer is advisable.


If your realtor recommends proceeding without conditions, don't hesitate to seek clarification and ask probing questions. A reputable realtor will elucidate the rationale behind their suggestion and help you comprehend the potential ramifications. Remember, it's your hard-earned money and your future home that are at stake, underscoring the importance of making an informed decision. Remember, it's entirely up to you to make the final decision.

In conclusion, while going without conditions in a real estate transaction may seem enticing, it undeniably carries inherent risks. While it might bolster your chances of clinching the deal in a cutthroat market, it also exposes you to potential pitfalls further down the road. Before deciding, carefully evaluate your options to ensure that you're making the best choice for your specific circumstances. After all, purchasing a home is a monumental investment, necessitating a blend of caution and confidence in equal measure.


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