Whatever your conditions, it is important that you act in good faith. By that we mean that you use your best efforts to fulfil the conditions. Here are a couple of points to keep in mind.
The bank may require an appraisal. Generally they lend on the purchase price or the appraised value, whichever is lower. Keep in mind that an appraisal is really an opinion. The fact that the appraisal comes in high or low doesn’t necessarily mean that you are overpaying or getting a deal. But you may have to adjust your financing accordingly.
Keep in mind too, that the bank will be concerned with other things besides just appraised value. You must be able to arrange insurance. For country property the lender will be concerned about the condition of the well and septic. Size of hydro entrance, knob and tube wiring. Possible soil contamination. All these things can have an impact on the lenders willingness to advance funds.
A building inspection will give you a much better idea of what you are actually getting and what repairs will be necessary. Many items are already apparent from your own inspection. Others may come as a surprise.
Ultimately upon completing the building inspection you will have to decide how to proceed. Keep in mind, every resale house will have some issues due to age, functional obsolescence and normal wear and tear.
It may well be that some deficiencies can be discussed with the owner and they may participate in the remedial work to keep the deal alive.
As we’ve seen, an offer containing a sale of property condition will normally have an escape clause permitting the seller to continue marketing their property. This means you could get notice at any time that another offer has been received and you have 24 - 72 hours to remove all your conditions.
In anticipation of this there are certain steps you may wish to consider.