What is a "conditional offer" in real estate terms?

A "conditional offer" in real estate refers to an offer to purchase property that is contingent upon certain conditions being met before the sale can be finalized or closed. This means that the buyer may require specific outcomes, such as passing a home inspection, securing financing, or obtaining necessary approvals from a homeowners association, before they are obligated to follow through with the purchase. If these conditions are not fulfilled, the buyer has the right to withdraw from the agreement without penalty.

In contrast, the other options do not accurately capture the essence of a conditional offer. An offer requiring acceptance within a set timeframe relates more to a time-sensitive proposal rather than specific conditions for the sale. An offer made during a bidding war pertains to competitive situations rather than stipulations that must be fulfilled. Lastly, an unconditional offer does not have any contingencies or conditions attached, which directly opposes the concept of a conditional offer.