Have you been looking to buy a property and had Agents talk to you about whether your offer will be conditional or unconditional?
There’s a big difference.
The strength of an offer does not always come down to price. Conditions often play a pivotal role as the whether a seller will accept an offer or not, particularly if the market is competitive with multiple buyers on each property.
What’s the difference?
Conveyancing laws in Australia differ from state to state, but here in New South Wales conditional and unconditional contracts refer to whether there are conditions attached to the sale of a property that must be satisfied before it becomes legally binding. Such as:
- Subject to Finance
- Subject to 5 day cooling off period (generally used for pest, building or strata reports and formal finance approval)
Selling?
PRO – Receiving an offer with no conditions is more appealing as the contracts are binding straight away, as seen in Auctions. A higher price is not worth much if the buyer pulls out due to their conditions.
CON – Not every buyer is able or willing to offer unconditionally.
Buying?
PRO – Making an offer with conditions has less risk and gives the opportunity to pull out should anything change whilst doing your due diligence.
CON – If other buyers do not need any conditions, you may not be successful securing the property. Asking for conditions shifts the risk to the seller.
Sale Method
How the property is being sold can typically give guidance as to what type of offer and contract the seller is after, for example:
- Auction – Unconditional offers/contracts
- Private Treaty – Conditional offers/contracts
- Expressions of Interest (POA or Tender) – Conditional offers/contracts
There is nothing stopping an offer being made either conditional or unconditional on any method of sale but it will either reduce or enhance the likelihood of being accepted depending on how the sellers campaign is going.
(It is worth noting that it is very common in Newcastle and Lake Macquarie for private treaty sales to exchange with a 5 day cooling off period as noted above).
Further to this, sellers are now commonly providing pest and building reports (or strata reports) during marketing to assist in making sure buyers have all the information required to make an offer and potentially reduce any conditions in a contract.
Next time you are selling or buying, establish your chosen team of professionals (Brokers, Conveyancers, Solicitors etc.) to help navigate the marketplace when it comes to commit to signing an conditional or unconditional contract. This will help avoid any delays on securing your next property!
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Amazing agent! . Luke is extremely professional and knowledgeable. He takes his work very seriously. We knew we were in good hands and could trust and rely upon him throughout the process to achieve a wonderful outcome for us selling our loved family property. We cannot recommend Luke enough!!
Luke is humble, kind and a skilled negotiator. We have found him to be a standout human in an industry that's not highly regarded. It can be difficult to know who to trust - we can trust Luke and Murdoch Property - he's not flashy & genuinely cares.
Highly recommended. Luke's approach to selling is friendly yet very professional, consistent, prompt and thorough in his communication. He made the process so much easier than we imagined and provided much needed support and advice that helped achieve the sale. His Newcastle market knowledge was outstanding and communicated in an easy to understand manner. Back office support from Diana was also greatly appreciated. I highly recommend Luke and his team to anyone seeking to sell their home.
Calm, Professional and Trustworthy from Start to Finish. Selling our property was a significant decision, and I am so grateful I had Luke Murdoch guiding me through the process. What I appreciated most about Luke was his calm and steady nature. No matter what was happening, he remained approachable, level-headed, and reassuring. He took the time to explain things clearly, answered my questions honestly, and never made me feel like I was a bother. Luke is incredibly knowledgeable, but what sets him apart is the way he combines that knowledge with genuine care for his clients. He was always accessible, kept me informed throughout the sale, and regularly went above and beyond what I expected from a real estate agent. Selling a home can be stressful, but Luke's professionalism, patience, and even temperament made the whole experience feel much easier. He's not only an excellent agent but also an all-round good guy who genuinely wants the best outcome for the people he works with. I wouldn't hesitate to recommend Luke to anyone looking to sell their property.
Luke was fantastic throughout the entire process of purchasing our home. His communication was excellent from start to finish, always keeping us informed and happy to answer any questions we had. He was honest, professional, and genuinely easy to deal with, which made the whole experience much less stressful. What stood out most was his integrity and straightforward approach. We always felt like we were getting honest advice, and he went above and beyond to ensure everything ran smoothly. I would highly recommend Luke to anyone looking to buy or sell a property. A great real estate agent and an all-round good bloke.
“5 STARS” are just not enough …! We hadn’t sold or purchased a property in over 25 years - so the prospect of selling was daunting. From the start however, Luke made the process extremely streamline - explained the process, and what to expect. Luke has a very fine tuned selling process which saw our investment property - photographed, on the website and open houses within 2 weeks we had ample offers to make a decision after this short period - which was based On Luke following up all offers ensuring they had finance etc approved. We had a tenant who had just moved out of this property - and Luke was extremely patient and informative of his processing the sale of our property to the tenant. this ensured a very smooth transition to selling the property vacant.
Can’t recommend Luke enough his manner and professionalism filled me with confidence.. he made it a stress free sale
An easy experience from start to finish . Luke is straight forward, professional and a great communicator. His knowledge of the Newcastle market is extensive and good to to have when you are making big decisions. I bought and sold simultaneously with Luke and the process was smooth and hassle-free.