Negotiation Strategy: Making Your Offer Competitive with a Sale Contingency

When you are buying, the offer you submit is only as strong as its weakest term. If you need to sell your current home first, your offer will likely contain a Sale Contingency. There are two types of contingencies: 1) a home sale contingency, where you have no contract on your home and are going to list it for sale, so you have a certain time to get it under contract and close; or 2) a home close contingency, where you have a contract on your home and already have a close date, so the deal is only contingent on you closing that deal.

In a competitive market, a contingency is an added risk for a seller. My role is to use a Contingency Compass to navigate this and make your offer the least risky option for them.

Two Ways to Win with a Contingency

Strategy 1: Make Your Contingency "Passive"If we must use a sale contingency, we sweeten the pot with strong terms:

Short Timeframe: We propose a very short time frame (e.g., 24-48 hours) for the seller to exercise a "Kick-Out Clause." This means if the seller receives a better, non-contingent offer, you have a short time to remove your contingency or walk away. This puts the risk back on you, but gives the seller confidence in a fast resolution.

Strong Price/Deposit: We offset the risk of the contingency with a higher price or a larger earnest money deposit.

Strategy 2: The Best Option—Avoid It Entirely

The most powerful strategy is to structure your finances so you can submit a non-contingent offer. This makes your proposal dramatically more attractive and often wins the house even if the price is slightly lower than a contingent offer.

Successful simultaneous transactions require skillful negotiation and strategic planning. Let me be your compass and help guide you with what works best for you.