What is an Unconditional Contract?
As a seller the entire process can seem overwhelming. There are the legal requirements of listing and selling your home, the compliance legislation, the costs and of course the real estate terminology and jargon. If you sell with Allan Real Estate you will not have to worry about any of the above concerns, as our highly experienced sales team will guide you through the process, informing and educating you throughout the process.
One question we often get from sellers when it comes to the pointy end of the process where we are negotiating the best deal is, ‘what is an unconditional contract’. Often, particularly in a strong market you as the seller will be presented with numerous offers and it will be a matter of deciding which is best for you. Surprisingly, it doesn’t always come down to price.
There are different types of offers and while purchase price is certainly important there are other factors to consider. An unconditional contract basically means it is an offer that is being presented with no other contingencies. The buyer is not requesting a building and best of finance condition, it is simply a cash offer that will once accepted will smooth sail through to settlement day. This is what we refer to as an unconditional contract.
A conditional contract on the other hand, offers a certain purchase price but is subject to the buyer being satisfied with certain conditions. The most common conditions include building and pest and finance. The buyer will employ a building inspector to inspect and report on the property and depending on the results of the report, the buyer has the option to terminate the agreement or renegotiate the deal if they are not satisfied with the building and pest findings.
A finance clause similarly allows the buyer time to ensure their finance is in order and approved within a set time frame. If for any reason the buyer cannot obtain the finance from their lender, whether it be due to the bank valuation not stacking up or the buyer is not able to borrow the amount they have offered, they are able to terminate the contract using the finance clause.
The other variances that we often consider when comparing offers is the settlement period. The normal time for a settlement from the date of the offer being accepted is 30 days, however on occasion buyers may request an extended settlement, be it 60 days, 90 days or more which is certainly a factor to take into consideration when comparing offers.
An unconditional contract is the cleanest and easiest offer you can accept, as long as the purchase price meets your expectations. At Allan Real Estate, our team have years of negotiation experience and are well equipped to present you with the best offers that have been through our qualifying processes and discussions to ensure there is nothing left on the table. We work hard for our sellers, while guiding them through the process to ensure that the experience is as stress-free and easy as possible.
