Until the last few years, it was considered (by most brokers) to be a negative thing to allow a buyer to come to the table with an offer that basically said, “I have a house to sell, please wait for me to sell my house so I can purchase your property.” 

In the past, after reviewing offers with that contingency, most listing brokers would worry that type of offer would add excess closing time, but especially that the “contingent” status placed on the MLS listing would make the listing virtually invisible to other buyers, even though the boiler plate verbiage allows continued marketing and makes it possible for that first offer to be bumped by a different offer. 

It has been so difficult for buyer’s brokers to compete in an extreme environment where inventory is  very scarce, that they have adapted to this drought by becoming extremely adept at digging deeper for the proverbial worms.  That means converting any possible lead (especially these contingent properties), into very real possibilities for their buyer clients.  That necessary shift in strategy has caused brokers to quit ignoring contingent listings and made buyers more aware of all opportunities. 

Listing brokers, who have also evolved with the times, now realize that these contingent offers have more advantages than they ever would consider in the past. For starters, there is usually no lender involved and no appraisal since many buyers have enough equity in their current property to cash out the new one or make financing any balance a piece of cake.

Buyers who have a home to sell before they can close on a new property are typically much more realistic in pricing their existing home, compared to less motivated sellers, and more aggressive when complying with lender requirements or buyer-requested repairs during the selling process because they fear becoming homeless. 

That fear instills a more aggressive attitude in buyers and makes it less likely that they will allow their offer on the new property to be bumped, which may be the most compelling reason for a seller to worry less about a contingent offer than they would on an offer that requires bank financing. The bank financing process is often fraught with more pitfalls because of lender’s property condition requirements and buyer credit glitches.

Sellers should of course carefully consider any offer based on how it suits their circumstances, but should know that contingent offers are no longer considered taboo by seasoned brokers.