Contingent offers are usually a losing proposition for all concerned.
Contingent offers make sellers feel warm and fuzzy for about a week ~ until they realize they didn’t really sell their home.
Contingent offers do, however, make contingent buyers feel good for considerably longer because they know they tied up a seller’s home without making a firm commitment.
Instead, they “kind of” made an offer that gives them a way out if everything doesn’t go perfectly.
If You’re The Seller
- When you accept a contingent offer, you’ve effectively taken your home off the market.
- You may have negotiated the right to continue to market your home, but most agents won’t show a home with a contingent sale because it’s not 100% available.
- When you accept a contingent offer, you become dependent upon the sale of your buyer’s home and you have zero control over that process.
Seller Questions For Contingent Offers
- What if your buyer’s home never sells?
- What if your buyer sells their home to yet another contingent buyer?
- What if your buyer’s home is overpriced?
- What if your buyers don’t care if their home sells? (aka “we don’t have to sell and we’re not gonna give it away!”)
- What if your buyers decide to sell their home FSBO?
- What if your buyers list with an inexperienced or part-time agent?
The bottom line?
A real buyer is a buyer who doesn’t have to sell their present home before buying, has totally-underwritten pre-approved financing, and needs or wants to buy a home now!
Buyers who must buy contingent upon selling their present home are not real buyers.