Should I accept an offer contingent on the sale of another property?

Unless a potential homebuyer is a first time homebuyer, it is likely they have a property they need to sell before purchasing a new one. Unfortunately timing a purchase of one property and the sale of another does not always result in impeccable timing. Often a buyer just starting the search doesn’t have their home on the market yet when they fall in love with their next property or a seller receives an offer and has only weeks to move.
So if you are seller with a home on the market, should you accept an offer from a buyer who needs to sell their home first? My answer? It depends!
It depends on your motivation. It depends on the quality of the rest of the buyer’s offer. And it depends on the property the buyer has for sale.
As an adviser to the seller, I look at an offer and the buyer’s property if contingent to make sure: Agents, include your own parameters here
• The property the buyer has to sell (the contingent property) is on the market
• The contingent property is priced at or below market
• The contingent property is recently new to the market, it has been marked down dramatically, or has undergone a major improvement or facelift (such as new carpet)
• The contingent property is in an area where homes are selling quickly
• Make sure the offer has specific dates by which the property must have a contract on it and close by
Recently I had clients who were just casually looking for a larger home than their current “starter home.” I had met with them a few times but they weren’t quite committed to moving. Then they stumbled on the perfect house. Lucky for them the house was not new on the market- had been overpriced & the price was just reduced. The home not being new on the market allowed the buyers to offer & get accepted a contingent offer on them selling their own home. We showed the sellers that the buyers home was in great condition & in a great area & would be priced right. In days we had their house up for sale & within a week it was under contract with a new owner. The first sellers only had to wait an extra week for closing on their home & they got buyers that completely love their home.
Although a contingent offer is far from ideal for a seller wanting to sell their home quickly, being willing to look at one will widen the buyer pool, perhaps enough to get the home sold.