On the day of land releases, priority is often given to “unconditional” offers. But what does this mean? We break down the differences between “conditional” and “unconditional” contracts to help you understand the process and secure your dream address…
Buying a block of land can feel overwhelming – especially if you’re a first homebuyer. However building your own home is a hugely rewarding experience, and understanding contractual terms – combined with a little bit of patience and determination – will help you to navigate the process and see your dream home take shape!
Getting Land Release Ready!
So the big day has come – you’ve chosen your location and you’re waiting to secure your address. Due to the incredible demand created by the Federal HomeBuilder Grant – eligible allotments have become hard to come by so it’s important you’re ready on Land Release day to secure your block.
By this stage, you will know your budget, what size home you’re looking for so you will know exactly what block size you are looking for. It’s good to also consider your ideal orientation and location within a land release. Our Lanser Sales Consultants will be able to let you know available block sizes before a land release, and spend some time discussing what’s available with you, to let you spend some time selecting which lot is right for you before it is released.
The crucial step in securing your block will be having your finances ready to sign an unconditional contract on the day. Although this isn’t absolutely necessary, it will prevent someone who wants the same block as you, who can go unconditional, from getting priority over any conditional contracts.
Conditional vs Unconditional – what does it mean?
Conditional offers are offers that are subject to requirements being met to complete the sale. This means that before the contract can go unconditional – or be completed – there are conditions in place. Common conditions include:
- Finance – an offer can be made conditional on finance being obtained/approved
- Inspections – building or pest inspections are common conditions on the sale of existing homes
- Sale of another property – purchasers might be selling another property to finance the purchase of their block. They can make an offer that is conditional on the other property selling.
To ensure your offer is unconditional on Land Release day it is important to discuss your ability to do so with your chosen advisor. If your purchase is subject to finance, it’s important to at least have pre-approval, if not full finance approval, given the current market conditions. It is important to discuss all of these issues with your lender and seek advice prior to making an unconditional offer on your block of land.
Unconditional offers & the HomeBuilder scheme
The Federal HomeBuilder Grant has increased the demand for land, so much so that vacant land (that will be ready to build on in the timeframe the scheme requires) is becoming hard to find.
This competitive market means that homebuyers are often competing for the same block of land. To give yourself the best chance of securing your lot, having an unconditional offer and being first in line is ideal.
Whether you’re buying with Lanser or another developer, now is the time to meet with your lender or broker and be ready come Land Release day.
For more information about conditional vs unconditional offers – please speak to your lender or to our friendly Lanser Sales Consultants who are happy to help answer all of your questions.