Should I accept a Contingent Offer On My House?

Kim Ward, a real estate advisor in San Diego, explains the considerations of accepting a contingent offer when selling a home. A contingent offer means the buyer's purchase is dependent on selling their own property first. Kim highlights the importance of understanding the buyer's situation, including whether their home is already on the market or in escrow. She advises sellers to thoroughly research the buyer's property, ensuring it’s well-priced and likely to sell quickly. Accepting a contingent offer can tie up the sale for an extended period, and Kim recommends including a "kick-out clause" to protect the seller by allowing them to consider other offers if the buyer fails to sell their home within a specified time.

Kim also discusses how accepting a contingent offer may affect the home's visibility on the market, as many listing services will change the status from active to contingent, reducing the chances of receiving backup offers. She emphasizes the importance of drafting clear, cautious real estate contracts and contingencies, and shares a success story of clients Bill and Kim, who accepted a contingent offer and are on track for a smooth closing thanks to careful planning. Kim encourages viewers to ask questions and consult her team for help with contingent sales.