Every offer is either a safety net or a locked door
Every property offer you make is either conditional or unconditional, and that single distinction determines whether you have an exit if something goes wrong or whether you are locked in with no way out. Agents will push you toward going unconditional because it gives the seller certainty, but the risk sits entirely with you.
Of first home buyers in the market:
- 61% have missed out on at least one property they were serious about .
- 70% bought with less than a 20% deposit, making lender valuations more critical .
- 77.3% of new residential loans are facilitated by a mortgage broker, and formal approval still takes time .
That pressure to "do whatever it takes" is real, and it will hit you at the negotiating table. You need to know what each offer type actually means before you face it.
A conditional offer is a standard buyer protection, not a sign of weakness
A means the sale only goes ahead if certain conditions are met within a set timeframe. If a condition is not satisfied, you can walk away without penalty and get your deposit back.
The most common conditions are:
Condition | What It Protects You From |
|---|---|
approval | Your lender declines the loan or values the property lower than the purchase price |
Hidden structural defects, termite damage, or safety issues | |
Satisfactory (apartments/townhouses) | Large special levies, building defects, or disputes in the owners corporation |
Sale of existing property | Being stuck paying two mortgages if your current home does not sell |
Solicitor or conveyancer review | Unfavourable contract terms, easements, or zoning restrictions |
A typical condition gives you 14 to 21 days to get formal loan approval. A condition usually allows 7 to 14 days. Your conveyancer sets these timeframes in the contract .
An unconditional offer locks you in with no way out
An has no conditions attached. Once the seller accepts, you are legally bound to buy the property. If you cannot settle because your loan falls through, because the building is falling apart, or because you changed your mind, you face serious consequences.
Those consequences can include:
- Losing your deposit. The standard deposit is 10% of the purchase price. On a $700,000 property, that is $70,000 gone .
- Being sued for damages. The seller can claim the difference if they resell the property for less than your agreed price .
- Legal costs. You pay your own legal fees and potentially the seller's as well .
Sellers prefer unconditional offers, even at a lower price
Sellers favour unconditional offers because they eliminate the risk of the deal falling through. In a competitive market, a seller may accept a lower unconditional offer over a higher conditional one because the certainty is worth more to them than the extra money .
Agents know this. They may tell you that "the vendor will only consider unconditional offers" or that "another buyer is going unconditional." Sometimes that is true. Sometimes it is a negotiation tactic. Either way, the risk sits with you.
Going unconditional is only reasonable when every box is ticked
There are narrow situations where an makes sense:
- You have unconditional loan approval (not just ) and the property has been valued by your lender.
- You have already completed a and are satisfied with the results. A combined inspection typically costs $500 to $900 .
- Your conveyancer has already reviewed the contract and given you the all-clear.
- You are buying at auction, where unconditional is the only option, meaning you must do all of the above before bidding.
If even one of those boxes is unticked, going unconditional is a gamble.
What going unconditional without preparation actually costs
Here is what can go wrong.
Scenario 1: Finance falls through. You made an unconditional offer on a $650,000 apartment. Your was for $600,000, and you assumed the extra $50,000 would be fine. Your lender's valuation comes in at $610,000 and they will only lend 80% of that, or $488,000. You cannot bridge the gap. You forfeit your $65,000 deposit.
Scenario 2: Building defects discovered after exchange. You skipped the to beat another buyer. After settlement, you discover $40,000 in structural repairs needed. You own the problem now.
These are not hypothetical. About 8% of auction sales in NSW result in because buyers cannot meet their contractual obligations .