Contingency Offers

A contingency offer allows for you to make your home purchase dependent upon the sale of your current home and on specified terms that are acceptable to both parties. This type of contingency is often difficult to negotiate in a seller's market because sellers are less willing to wait for the buyer's home to be sold when buyers are plentiful. However, in a buyer's market when there are more houses compared to buyers these terms become more reasonable.

Furthermore, you should know that just because it is a buyer's market it does not mean you can be unreasonable in anticipation that you are dealing with a desperate seller. Many sellers who accept contingent sale offers demand that a release clause is included in the terms document. A release clause permits the sellers to continue to list their property for sale until the buyers remove their sale contingency. If they receive another offer before the sale contingency is removed, they can accept it in backup position, subject to the collapse of the primary offer.