What to Expect When Accepting an Offer in Phoenix With a Contingency to Sell Another Property

Accepting an offer on your Phoenix home is always exciting, but when the buyer’s offer comes with a contingency to sell their own property first, things can feel a bit more complex. If you’re wondering what this means for your sale and how to navigate the process, you’re not alone! Let’s break down what to expect and how to keep your transaction on track.

What Is a Contingency to Sell?

In real estate, a contingency is basically a condition that must be met for the sale to move forward. When a buyer’s offer is contingent on selling their current home, it means they need to complete that sale before they can close on yours. This is fairly common in markets like Phoenix, where many buyers are also sellers.

The Timeline: Expect Some Flexibility

With this contingency in place, your closing timeline may be longer or more uncertain. The buyer will typically have a set period—often 30 to 60 days—to sell their home. If they can’t, you may have the right to move on to another buyer, but it’s important to review the details in your contract carefully.

Pros and Cons for Sellers

• Pros: You might get a higher offer from a motivated buyer who just needs a little extra time. Plus, in a slower market, accepting a contingent offer can keep your home from sitting unsold.
• Cons: There’s always a risk the buyer’s sale falls through, which can delay your plans or force you back to square one. You might also miss out on other offers during this waiting period.

How to Protect Yourself

• Kick-Out Clause: This allows you to continue marketing your home and accept other offers. If a better offer comes in, the original buyer usually has a short window to remove their contingency or step aside.
• Clear Deadlines: Make sure the contract spells out exactly how long the buyer has to sell their property and what happens if they can’t.
• Stay in Communication: Regular updates from your agent and the buyer’s side will help you stay on top of any changes with their sale.

Final Thoughts

Accepting a contingent offer in Phoenix isn’t unusual, but it does require patience and a bit of flexibility. With the right protections in your contract and a clear understanding of the process, you can still achieve a smooth and successful sale. Lean on your real estate agent for guidance every step of the way—they’ll help you navigate the twists and turns so you can move forward with confidence!