Should I consider accepting contingent offers from buyers?

Well, if you do not have any other offers that is totally up to you to accept an offer with contingencies. It is a gamble, because yes, something could come in better or something might come in lower.

Pros: Accepting a contingent offer means you don’t have to take your home off the market quite yet, since the conditions of the deal haven’t been met. If the buyer backs out of the deal, you can sell without having to re-list. In certain cases, some buyers may be willing to pay extra to have their contingent offer met.

Cons: Home sales with contingent offers are usually slower than those without. It takes time to satisfy a buyer’s contingencies and additional time to communicate that they have been met. And of course, there’s always the risk that the deal could fall through.

As always, trust your agent for guidance when facing contingent offers.

Yes, you can accept contingent offers, but you want to structure them carefully so you don’t get trapped if a better offer comes in. In California this is very common, especially when a buyer needs to sell their current home before buying yours. The key is how the contingency is written in the purchase agreement.

Here’s how it typically works and what you should consider:

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1. What a Contingent Offer Means

A contingent offer usually means the buyer’s purchase of your home is dependent on something else happening first, most commonly:
• The buyer must sell their current home
• The buyer must close escrow on another property
• The buyer needs to remove another contingency

If that event doesn’t happen, the buyer can cancel the contract.

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2. The Protection Sellers Usually Use (Kick-Out Clause)

In California, sellers often accept contingent offers with a kick-out clause (sometimes called a 72-hour clause).

This means:
1. You accept the buyer’s contingent offer.
2. Your home usually remains active in the MLS.
3. If another buyer makes a stronger offer, you can issue a Notice to Perform.
4. The original buyer typically has 48–72 hours to remove their contingency (for example, remove the home-sale contingency).
5. If they cannot remove it, you are free to cancel and accept the new offer.

This protects you from being locked into a weak position.

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3. What Happens if a Better Offer Comes In

If you did not include a kick-out clause, you are generally bound to the contract until:
• the contingency expires, or
• the buyer cancels.

But if you did include the clause, you can:
• Notify the first buyer
• Give them a short window to remove their contingency
• If they cannot → accept the better offer

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4. Questions You Should Ask About a Contingent Buyer

Before accepting, look at:
• Is their home already listed?
• Is it already in escrow?
• Is it realistically priced to sell quickly?
• How long is their contingency period?

A buyer whose home is already in escrow is very different from someone who hasn’t even listed yet.

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5. Strategy Many Smart Sellers Use

A common approach:

✔ Accept the contingent offer
✔ Keep marketing the property
✔ Use a kick-out clause
✔ Continue showing the home
✔ Encourage backup offers

This gives you a buyer without losing leverage.

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6. A Real Example

Example timeline:
• Buyer A makes offer contingent on selling their home
• You accept with a 72-hour kick-out clause
• 2 weeks later Buyer B makes a better offer
• You notify Buyer A
• Buyer A has 72 hours to remove their contingency
• If they cannot → you move to Buyer B

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💡 One important nuance:
Sometimes contingent buyers are very strong financially and simply want to reduce risk. In those cases they may be willing to remove the contingency quickly if pressured.

if you have received multiple offer, as is very common in San Diego area at this time, then you probably would not/should not consider a contingent offer.