When it comes to buying a house in Calgary, placing a strong, attractive offer will be an essential component of landing your dream home. That said, there’s more that goes into a buying offer than just the price you’re willing to pay, the conditions to include when buying a house in Calgary is just as important.

As a buyer, including protective conditions in your offer is a balancing act. Including too many stipulations in your buying offer can make it less appealing to sellers. On the other hand, no conditions at all can put your investment at risk.

So, what conditions should you put on a house offer in Calgary? Keep reading to find out.

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What is a Conditional Offer on a House?

If your buying offer includes certain contingencies, it’s known as a conditional offer. From a process standpoint, conditional offers work differently from a firm or unconditional offer.

Once a seller accepts your offer, the home becomes conditionally sold. After the seller receives your deposit, there is then a short window (usually a few days to a week) for all conditions to be met.

Once any conditions have been resolved, the transaction can be finalized. However, if the seller is unable to meet your conditions in the agreed-upon timeframe, the power is back in your hands. Depending on your comfort level and the details outlined in the offer, you may be able to back out of the purchase agreement should you wish.

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What’s Happening in the Calgary Market?

When it comes to having conditions in your buying offer, there’s no all-encompassing template for what should and shouldn’t be included. Instead, you’ll want to weigh which conditions (if any) are worth including based on what’s happening in the market.

If the market is working in buyers’ favour, you’ll have a little more leverage to include certain conditions. However, if the market is favouring sellers – or you find yourself bidding against other buyers, you may want to simplify your offer to make it more appealing.

Right now, real estate in Calgary is in a unique position. Rather than being an explicit buyer’s or seller’s market, trends are different around the city. So, deciding which conditions to include will be situation-specific.

Common Conditions For Buying a House

Home Inspection Condition

One of the most common and arguably, most important, buyer contingencies is the home inspection condition. This grants you the opportunity to have the property professionally inspected before the deal is finalized.

As a buyer, including a home inspection condition in your offer adds an important layer of protection to your investment. Occasionally, homes can be hiding latent defects that even the seller doesn’t know about. Should the inspection uncover any major issues, you’ll have the option to renegotiate certain elements of the purchase agreement, or in some cases, be able to back out of the deal.

Financing Condition

Another somewhat common condition, centring on home financing, makes your offer to purchase a home dependent on securing mortgage approval. As a buyer, this shields you from the risk of making a major financial commitment without having the proper resources.

That said, rather than relying on this type of condition, it’s best to obtain mortgage pre-approval before you start house hunting. This not only helps you understand your affordability but also reduces the number of conditions in your offer, making it more attractive to sellers.

Appraisal Condition

Buyers may also submit a conditional offer granting them the right to back out of a purchase if the home is determined to be worth less than the negotiated price following a formal appraisal.

If you’re working with an experienced and knowledgeable real estate agent, you shouldn’t need this condition. They’ll help you understand the home’s fair market value (and long-term appreciation potential) so that you’re making an informed decision.

Home Sale Condition

Although not as common as the other conditions on this list, some buyers opt to include a home sale condition in their offer, which allows them to walk away if they can’t sell their current place by a certain deadline.

As you might expect, sellers generally don’t love this condition as there’s no guarantee that the buyer’s home will sell. So, there aren’t many circumstances where your real estate agent will recommend including it. If you are concerned about getting stuck with two mortgages, it may be best to list and sell your current home first before you start house hunting.

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Find Your Dream Home

If you’re thinking about buying a home in Calgary, you’ll want to work with an experienced team of professionals like us – Dolce Real Estate Group. Our experience and unrivalled knowledge of Calgary’s housing market can help you find a great home while protecting your investment.

Looking to find the perfect home in Calgary? We can help! Call 403.999.5882 to get in touch – or send us an email at info@dolcerealestate.ca.

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