What is the difference between a conditional and unconditional offer?

Short answer: Conditional = buy IF conditions met (finance, inspection). Unconditional = must buy, no backing out.

What this actually means in plain English

A conditional offer means you will buy if certain things happen — like getting finance, a good building report, or selling your current home. An unconditional offer means you must buy no matter what. No backing out. Unconditional is stronger to sellers but riskier for you. First home buyers should usually make conditional offers.

Key Facts

Conditional offer: subject to finance, inspection, or other conditions
Unconditional offer: no conditions, binding immediately
Sellers prefer unconditional offers
First home buyers should usually include conditions
Finance condition: 5-10 working days typical
Building inspection condition: 5-10 working days

Example

Conditional Offer: $600,000 subject to finance and inspection

Unconditional Offer: $600,000, no conditions

Seller Choice: Unconditional wins if prices are equal

Buyer Risk: Unconditional = no protection if house has problems

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