What is a contingent offer? Let me break the term down for you today.
A contingent offer is an offer that a homebuyer makes on a home; their offer to the seller is contingent on the buyer’s ability to sell their own home. In other words, the buyer can’t purchase a new home until they sell their current home. The buyer’s offer might be contingent for financial reasons or timing.
Contingent offers can cause a buyer to lose a lot of their leverage and sellers to lose their time on the market.
One disadvantage of using contingent offers is that they might require the seller to wait for the buyer to sell their own house first before they’re confident the buyer will be able to move forward. Contingent offers can cause a buyer to lose a lot of their leverage and sellers to lose their time on the market.
On the flip side, if the seller’s home has already been on the market for a long time, they might not have many other options; this is a way for buyers to get the time to sell their home and proceed with their purchase.
If you have any questions about how contingent offers work or in which situations they would be most effectively used, don’t hesitate to reach out to us. I’d love to connect with you.