Offer Conditions - How to Choose
Waiving all conditions is certainly not an unusual request given the current market in Ottawa. We spoke with Stephany Watson to find out whether she thinks ‘no conditions’ is a good idea for buyers in today’s market.
Stephany says:
We can certainly appreciate and understand the urgency of the current property market along with the perceived necessity of “unconditional offers” to win a deal. That said, we must always properly advise our clients of the potential risks in such scenarios based not only on the clients respective experience and financial position, but also of potential risks outside of any of our control.
Part of our responsibility is to provide our clients with information so they can best make confident decisions pertaining to any given transaction. It is ultimately the client's decision, and the client's decision alone as to the best way for them to proceed. The offer is in their name, and thus the conditions are in their name, too.
There are many possible conditions in any transaction that will impact financing. To highlight a few: title insurance, inspections, appraisals, insurance, zoning, status certificate (in condos), tenancy agreements (in rentals), various legal issues, etc…. Any of these items can hinder financing.
Even the strongest of files are not guaranteed. What if the client quits his/her job? Racks up debt? Ruins credit? Bankruptcy, etc. We do our best to provide sound and effective advice for all of our clients during the conditional period and the period in between offers accepted to closing. That being said, over the many years in our business, we have seen many of these examples materialize.
As professionals in the real estate industry, we have to always do what we believe is best for our clients. When asked to provide advice on going into an unconditional offer, we can highlight the strong points of the client's file, but also must advise on potential risk. Ultimately, the client must come to their own conclusion and decision, based on their own comfort level and risk tolerance, financial profile, and etc.
Meet Stephany
stephany@newpurveyors.com
613 324 3717