Will sellers reject my offer if it has a home sale contingency attached?
Answered by Allen Markel, REALTOR®, Texas Premier Realty ·
Short answer
Yes, many sellers will reject an offer with a home sale contingency because it makes closing uncertain. The seller takes on risk that your purchase depends on selling your current home first. A contingency can work if your current home is already listed, you have strong finances to close anyway, or the seller is motivated. The right approach depends on your situation and the market.
Why sellers often reject a home sale contingency
A home sale contingency means your offer to buy depends on you selling your current home first. From the seller's perspective, this creates uncertainty. They do not know when or if your sale will close, which delays their closing date and ties up their property. If your home does not sell, the deal falls apart and they have to start over with a new buyer.
Sellers in a strong market or with multiple offers will almost always reject a contingency offer in favor of one with no contingency. Even in a slower market, a seller may walk away because the risk is not worth the wait.
When a contingency offer might work
A home sale contingency is more likely to be accepted if your current home is already listed and has an offer, or if you can show the seller you have the financial strength to close even if your sale falls through. Some sellers are motivated by other factors, such as a tight timeline to move or a need to close quickly, and may accept the contingency if the price is right.
The strength of your offer in other ways also matters. If you offer a higher price, a larger earnest money deposit, a shorter contingency period, or a faster closing date, you may offset some of the seller's concern. There is no guarantee these steps will lead to acceptance, but they can improve your odds.
Your options and next steps
You have several paths forward. You can make an offer with a contingency and accept that it may be rejected. You can try to sell your current home first, then make an offer without a contingency. You can explore whether you can qualify for a bridge loan or other financing that lets you close on the new home before your current home sells. Each approach has trade-offs in timing, cost, and convenience.
The right choice depends on your timeline, how quickly your current home might sell, your financial position, and how motivated you are to buy this particular home. Talk to us to find the right option for your circumstances.
Common follow-up questions
What is a home sale contingency?
It is a clause in your offer that makes your purchase conditional on selling your current home first. If your home does not sell by a set date, you can walk away from the deal without penalty.
Can I make an offer without a contingency if my current home is not sold yet?
Yes, but you would need to have the cash or financing in place to close on the new home regardless of whether your current home sells. This is riskier and more expensive if you end up carrying two mortgages.
How long does a home sale contingency usually last?
The length is negotiated between you and the seller. It could be weeks or months, depending on how long you think your current home will take to sell. A shorter period is more attractive to sellers.
If my offer with a contingency is rejected, what should I do?
You can revise your offer to remove the contingency if you have financing lined up, list your current home and make a new offer once it is under contract, or explore other homes that might be a better fit for your timeline.
Sources
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Related questions
How do I write a purchase offer contingent on selling my existing home?
A purchase offer contingent on selling your current home uses an addendum to the standard TREC contract.
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