Conditional Offers Are Back in Markham — Here’s How to Use Them to Your Advantage

In the spring of 2022, a Markham buyer who submitted an offer with a home inspection condition was effectively disqualified before the seller even read it. Bidding wars were so intense and buyer competition so fierce that conditional offers were not just discouraged — they were deal-killers. Sellers had 10, 12, or 15 competing offers, most of them unconditional, and they simply moved to the next one.

That market is gone. As of May 2026, Markham has 755 active listings, 33 days average on market, and sellers routinely accepting conditional offers on both home inspection and financing. The conditional offer is back — and knowing how to use it well is one of the most valuable skills a Markham buyer can have right now.

Michael John Lau, Markham’s top REALTOR® and CPA/CMA, structures conditional offers for buyers every week. Here is the complete strategic playbook.

What a Conditional Offer Is and Why It Matters

A conditional offer is an Agreement of Purchase and Sale that includes one or more conditions — clauses that must be satisfied before the agreement becomes firm and binding. The most common conditions in Markham residential transactions are a condition on home inspection (giving the buyer the right to have the property professionally inspected and to review the results before finalizing the purchase) and a condition on financing (giving the buyer’s lender time to formally approve the mortgage on the specific property).

During the condition period — typically five to ten business days per condition — the buyer can investigate the property, the lender can complete their appraisal and final approval, and both parties remain in the transaction. If the conditions are satisfied, the buyer waives them and the offer becomes firm. If a condition cannot be satisfied — the inspection reveals a major issue, or the lender declines to approve the mortgage — the buyer can rescind the offer, return the deposit, and walk away.

The Home Inspection Condition — Your Most Important Protection

The home inspection condition is not a formality. It is a financial protection against hidden defects that can cost $20,000 to $80,000 or more to remediate in a typical Markham resale home. Markham’s housing stock spans from 1960s backsplits in Markham Village to newer-but-aging detached homes in Wismer Commons and Greensborough — all with decades of deferred maintenance history that a walk-through showing cannot reveal.

During the condition period, hire a qualified home inspector who carries professional liability insurance. Budget two to three hours for a thorough inspection. Attend in person if possible — a good inspector narrates what they find as they find it, giving you context that the written report alone cannot fully convey.

If the inspection reveals issues, your options are: waive the condition and proceed as-is, negotiate a price reduction to account for the remediation cost, request specific repairs before closing, or rescind the offer if the issues are severe enough to make the purchase financially unviable. In the current Markham buyer’s market, a seller whose home has a $25,000 foundation repair need is in a weak negotiating position when their listing has been on the market for 40 days. Use this reality — but be professional and data-driven in how you deploy it.

The Financing Condition — Your Mortgage Safety Net

Even with a full mortgage pre-approval in hand, a financing condition on your offer protects you in several specific ways.

The lender’s appraisal may come in below the purchase price. This happens more frequently in the current Markham market than buyers expect — particularly on properties that have been priced aggressively or in luxury segments where comparable sales data is limited. If the appraisal comes in at $1,150,000 on a home you offered $1,250,000 for, your lender will only lend against the appraised value. The financing condition gives you the right to rescind if the financing does not come through as planned.

Your financial circumstances may change between offer and closing. A job change, a new debt obligation, or a change in your co-borrower’s situation can affect your mortgage qualification. The financing condition provides a safety valve.

In the current Markham market, sellers are accepting five to seven business day financing conditions without objection on the vast majority of transactions. There is no rational argument for waiving a financing condition in a market where 50 other listings exist in your community and price range.

How to Structure a Strong Conditional Offer in Markham’s 2026 Market

A conditional offer that wins in Markham’s current market is not simply an offer with conditions attached. It is a carefully structured document that signals seriousness, preparation, and respect for the seller’s needs while protecting the buyer’s interests.

Use specific, reasonable condition periods. Five business days for home inspection and seven business days for financing is the standard range in the current Markham market. Shorter condition periods signal confidence and efficiency; longer periods without justification can seem like delay tactics.

Offer a meaningful deposit. $25,000 to $50,000 on a $1,000,000 to $1,400,000 Markham home shows commitment that unconditional offers demonstrate through waived conditions.

Propose a closing date that works for both parties. In the current buyer-friendly environment, sellers are more flexible on timing than at any point in the past four years. Use this flexibility to your advantage.

Michael John Lau, Markham’s top REALTOR®, structures every conditional offer with the same care and strategic thought as an unconditional one — because a well-structured conditional offer in today’s Markham market wins cleanly while protecting buyers from the risks that unconditional offers at the 2022 peak left entirely unaddressed.

Frequently Asked Questions

What is a conditional offer in Markham real estate?

A conditional offer is an Agreement of Purchase and Sale that includes clauses—such as home inspection or financing—that must be satisfied before the agreement becomes firm. If conditions aren't met, the buyer can rescind the offer and retrieve their deposit.

Should I waive the home inspection condition in 2026?

No. In the 2026 buyer's market, sellers are routinely accepting conditional offers. Waiving inspection leaves you exposed to hidden defects that can cost $20,000 to $80,000+ to remediate in a typical Markham resale home.

How long should a financing condition be in a Markham offer?

Five to seven business days is the standard range in the current Markham market. This gives your lender time to complete their appraisal and final approval while signaling seriousness to the seller.