Home Sale Contingency: Why Sellers Hesitate to Accept Them in Citrus County

By Diana Dodd, REALTOR® | ERA American Suncoast Realty

A home sale contingency is one of the most common requests I hear from buyers who need to sell their current home before purchasing another.

One question I hear quite often is:

“Why won’t the seller accept an offer with a home sale contingency?”

While a home sale contingency can protect buyers, it’s important to understand the situation from the seller’s perspective.

Discuss Your Home Sale Contingency Early

If your plan is to sell your current home before buying your next one, tell your real estate agent at the beginning of your home search.

Knowing your plan early allows your agent to help you develop the best strategy. In some cases, it may make sense to list your current home before actively shopping. In others, your agent may recommend waiting until your home is under contract before making offers.

The earlier your agent understands your goals, the better they can guide you and help you avoid disappointment later.

Understanding a Home Sale Contingency

A home sale contingency means the buyer’s purchase depends on selling their current home first. If the buyer’s home does not sell, the buyer may have the right to cancel the contract.

While this provides protection for the buyer, it creates uncertainty for the seller. Buyers can learn more about Florida real estate contracts through Florida Realtors Consumer Resources.

The Timeline Sellers See

Let’s look at a common scenario.

A buyer submits an offer with a home sale contingency, but their current home is not yet on the market. The seller accepts the offer and takes their home off the market.

From the seller’s perspective, the timeline may look something like this:

Month 1

The buyer prepares their home for sale, completes any needed updates, and gets it listed.

Months 2-3

The buyer waits for an acceptable offer on their home.

Months 4-5

The buyer’s home goes through inspections, financing, appraisal, and closing.

If everything goes perfectly, the seller may wait five months to close.

Why Sellers Worry

The biggest concern is what happens if the buyer’s home doesn’t sell or the contract falls apart.

The seller may have spent months waiting only to put their home back on the market and start over.

During that time:

• Other buyers may have purchased different homes.
• Market conditions may have changed.
• Interest rates may have changed.
• The seller’s moving plans may have been delayed.

This is why many sellers are cautious about accepting a home sale contingency.

When Sellers Are More Comfortable With Contingent Offers

Not all contingencies are viewed the same way.

A seller is often more comfortable when:

• The buyer’s home is already listed.
• The buyer’s home is already under contract.
• The contingency period is short.
• The buyer’s home is in a strong market.

The less uncertainty involved, the more attractive the offer becomes.

The Bottom Line

Most sellers are not rejecting a home sale contingency because they dislike the buyer. They are simply evaluating the amount of time and risk involved.

Understanding the seller’s perspective can help buyers make stronger offers and improve their chances of getting an offer accepted.

If you need to sell before you buy, planning ahead and talking with your REALTOR® early can make the entire process smoother.

Link Florida Realtors Consumer Resources to: https://www.floridarealtors.org/news-media/consumer-resources