This is by far the biggest mistake that I see purchases make every single day when it comes to negotiating for a property.
The difference between the conditional and unconditional offers on property
We see purchases every day that are in a really great position. They’ve got everything organized, their money organized, their building inspector organized, a great deposit, and everything ready to actually buy a property, but they don’t understand the difference between a conditional offer and an unconditional offer.
Unconditional offers
Now, an unconditional offer is often referred to as a cash offer, but it doesn’t mean that you’ve got the money in the bank ready to go. It just means that you’re not putting any conditions on the contract that the vendor has to take a risk on to get to settlement.
Now, by eliminating these conditions on the contract, you’re accepting all of those responsibilities for making sure that the money is ready for settlement on your own terms, which means there’s absolutely no risk from the vendor’s perspective.
They sign the contract, they get through calling off, the deposit’s paid, it’s unconditional, the sold sticker goes up, they’re happy days, they’re off to the next property, and that’s what a vendor likes. They like the least amount of risk possible with the highest price they can possibly get. We see all the time where vendors will accept an unconditional offer that is a lower price than something subject to finance or subject to settlement of a property or subject to sale even of another property.
So if you can put yourself in a position to make an unconditional offer, you’ll be way ahead of the pack regarding the negotiations and the possibilities of being accepted on a property.
It’s a really important thing, and as long as you’re confident that the money will come through and you know your situation, this could be an option for you, as long as you’re willing to take that risk.
So you need to speak to all of your finance broker and all of the professional people you’re using, your conveyancer, just to make sure this is an option that’s right for you. If it is, it could give you a massive advantage in the negotiations and win you your dream property.