Should You Accept an Offer with a Home Sale Contingency?

Receiving an offer on your home is exciting. But what if the buyer's offer depends on selling their current home first?

This is known as a home sale contingency. It can make buyers more comfortable, and it also gives sellers more to think about.

Should you accept the offer? The answer depends on your situation, local market conditions and the details of the contract. Here's what every South Florida seller, from Homestead to Broward, should know.

A home sale contingency means the buyer needs to sell their current home before they can complete the purchase of yours.

What happens if their home doesn't sell in time depends on how the contract is written. I'm not an attorney, so I don't interpret contracts. Have a real estate attorney review how yours handles this.

Your decision should reflect local market conditions.

If your home is receiving multiple offers, you may have more flexibility to choose an offer without contingencies. If buyer activity has slowed, a contingent offer could still lead to a successful sale.

A local real estate professional can help you weigh your options.

Not all contingent offers are the same.

Ask questions such as:

• Is the buyer's home already listed?
• Do they have an accepted offer?
• Is their home priced competitively?
• How long has it been on the market?

The stronger the buyer's position, the lower the risk of delays.

Whatever the contingency, I verify a buyer's financing before an offer is accepted, not after. You can see where that fits in The Sequence, my process for selling a home.

A home sale contingency may push back your closing date.

Before accepting, consider:

• Your moving schedule
• Any plans to buy another home
• Work deadlines
• Other personal commitments

Make sure the timeline fits your needs. If you're buying your next home too, my page for move-up buyers explains how I line up the sale and the purchase. For the steps from listing to closing, see what a smooth home sale looks like from start to finish.

If you're considering a contingent offer, these are good questions to raise with your attorney before you sign:

• Is there a deadline for the buyer to sell their home?
• Can you keep showing your home while you wait?
• Can you accept another offer, and under what conditions?

How a contract handles each of these is a legal question. Your attorney can confirm what your contract provides.

A home sale contingency isn't automatically a deal breaker.

Before accepting an offer, consider:

• The buyer's ability to sell their home
• Current market conditions
• Your timeline
• How the contract handles the contingency
• Your long-term goals

The strongest offer is the one that gives you the best chance of a smooth closing, and that is not always the highest one.

When an offer comes in on a home I've listed, we look at the price and the terms together before you decide. At Nanci Gilbert, PA, that's part of how I help sellers across Miami-Dade and Broward. You can read more about selling your home in South Florida or selling a home in Homestead.

If you'd like a starting number first, ask for a complimentary home valuation. When you're ready, send me a note.