Should I Accept an Offer Contingent on the Buyer Selling Their Home?
Sometimes. A home sale contingency means your closing depends on someone else's deal. How I evaluate those offers for sellers and what to track until closing.
Sometimes. A home sale contingency means your closing depends on the buyer's sale closing first. That adds a second deal you don't control. It can still be the right offer if the price and terms are strong and the buyer's sale is already moving. The key is how far along their sale is.
How far along is the buyer's sale?
Rank it from strongest to weakest:
- Already under a signed purchase and sale agreement, with the buyer's buyer approved for their mortgage. Strongest.
- Under offer, but no purchase and sale agreement yet.
- Listed, not under offer. Much riskier.
- Not listed yet. Usually a pass unless everything else is exceptional.
What should I ask for?
- Proof of their sale's status: the accepted offer or signed purchase and sale agreement and the target closing date.
- A pre-approval that shows the buyer can carry the purchase.
- Clear deadlines in the agreement for their sale to close.
- Your attorney's input on how the contingency is written and what happens if their sale falls through.
What do I track once it's accepted?
Their closing date, their buyer's mortgage commitment, and confirmation that their sale recorded. Then your buyer's own mortgage commitment. I track all of it, so you aren't left guessing.
What does this look like in practice?
On a recent condo sale, the buyers were also selling their own home, and our deal depended on it. Their sale was already under agreement, so the risk was manageable. In the final weeks I confirmed their sale recorded and that their written mortgage commitment reached the attorneys by the deadline. It wasn't luck; it was tracking.
Questions people actually ask.
Is a contingent offer worse than a lower offer with no contingency?
Not always. Compare the net to you and the likelihood of closing, not just the price.
Can I keep showing the house?
That depends on how the agreement is written. Discuss it with your attorney before you accept.
What if their sale falls apart?
The contingency usually lets the buyer exit, and you go back to market. That's why the strength of their sale matters most.
This article is general information about Massachusetts real estate, not legal, tax, or financial advice. Every property and transaction is different. For advice on your situation, talk with me and, where appropriate, an attorney, lender, or tax professional.