Conditional offer: A conditional offer is an offer made by the buyer that states in the contract that the sale is “subject to” other events occurring. “While you agree to buy the home, you are agreeing to buy it when specific conditions are met,” explains Tony. “For instance, a condition that may be placed on the sale could be that the sale can only go through if the buyer is able to get financing from a chosen bank.”

Other common conditions placed on offers include building and pest inspection showing no major problems, the sale of another property (such as a former home) is required for the contract to be applicable, the bank’s valuation needs to come back at the purchase price, and confirmation of council approval of some structures (such as a granny flat).

A solicitor or conveyancer will be required to write up these conditions formally into the contract and you should ask them specifically what this means you need to do to fulfil the contract. “You can make your offer subject to multiple conditions and if the conditions are not met, you can back out of the sale without a penalty,” says Tony. “This offers the purchaser a level of protection that can make a transaction go more smoothly and provide some stress relief.”

It also means if something unsavoury does appear during one of the searches, there’s an opportunity to negotiate or in the worst-case scenario, back out completely from the sale.

While conditional offers are very common, there is the risk a seller will not be comfortable agreeing to an offer with too many requirements that could see the sale fall through. If another buyer is making a similar offer with fewer restrictions, the seller may choose to accept their offer first.

Unconditional offer: Making an unconditional offer requires the buyer to be certain they want to buy and that they can complete the transaction when it comes to settlement day.

Regardless of any changes between the time the offer is accepted and the day it is officially sold, the buyer will need to follow through with the transaction.

“Sellers are often more willing to accept an unconditional offer as this provides them a level of certainty that the sale will go ahead,” says Tony.

“In some situations, it may be possible to make an unconditional offer at a lower than market price. Speak to the agent to find out whether this could be a worthwhile strategy.”