Should You Accept an Offer from a Buyer Who Needs to Sell First?

by Ryan Rose

You receive an offer on your Las Vegas home, but it comes with a contingency: the buyer needs to sell their current home before they can close on yours. This is called a home sale contingency, and it creates risk for you as a seller. Is it worth accepting? Here is how to evaluate these situations.

What a Home Sale Contingency Means

A home sale contingency makes the purchase of your home dependent on the buyer successfully selling their current home. If their home does not sell, they can back out of buying yours, usually with their earnest money returned.

This protects the buyer from owning two homes simultaneously, but it transfers risk to you. You are essentially tying your sale to the success of someone else's sale.

Risk for You	What Could Happen
Extended timeline	Their home takes months to sell, delaying your sale
Deal falls through	Their home does not sell, they cancel, you start over
Lost time on market	You waited for them while other buyers moved on
Ripple effect	Problems with their sale become problems for yours

When to Consider It

Home sale contingency offers are not automatically bad. They might make sense if:

You have no other offers. A contingent offer is better than no offer if your home has been sitting. At least it is a path to closing, even if uncertain.

The buyer's home is already under contract. If their home is already pending with a strong buyer, most of the risk is eliminated. Check the status carefully.

The buyer's home is highly marketable. If they own a well-priced home in a desirable area, it will likely sell. If they own an overpriced problem property, their challenges become yours.

You are not in a hurry. If your timeline is flexible and you can wait for their situation to resolve, the risk matters less.

The offer is strong otherwise. A great price and terms might compensate for the contingency risk.

When to Decline

Some contingent offers are not worth the risk:

Their home is not yet listed. If they have not even put their home on the market, you are waiting for two transactions plus their preparation time. This can take months.

Their home appears difficult to sell. If they are trying to sell an unusual property, in a tough market, or at an unrealistic price, their problems will derail your sale.

You have other interested buyers. Non-contingent offers provide certainty. Why take contingency risk if you have clean alternatives?

Your timeline is tight. If you need to close by a certain date, contingent offers introduce too much uncertainty.

The Kick-Out Clause

If you accept a contingent offer, you can protect yourself with a kick-out clause (sometimes called a bump clause). This allows you to continue marketing your home and accept backup offers.

If you receive another offer, you notify the contingent buyer. They then have a short period (typically 24-72 hours) to remove their contingency and proceed with the purchase. If they cannot or will not, you can accept the new offer.

A kick-out clause reduces your risk by keeping your options open while giving the contingent buyer a chance.

Questions to Ask

Before accepting a contingent offer, get information:

Is their home listed? At what price? You can research whether their asking price is realistic.

How long has it been on market? A home that has been sitting for months is a red flag.

Are they working with a good agent? Professional representation increases their chances of selling.

Have they received any offers? Prior offers suggest interest even if they did not work out.

What is their drop-dead date? At some point, they need to perform or you need to move on.

Negotiating the Terms

If you are willing to consider a contingent offer, negotiate terms that protect you:

Require their home to be listed within a specific timeframe. If it is not listed, require listing within days, not weeks.

Include a kick-out clause. This is non-negotiable if you are taking contingency risk.

Set an expiration date. The contingency should have a deadline after which you can cancel if their home has not sold.

Require a reasonable price. If their home is significantly overpriced, their contingency is unlikely to resolve.

Where to Start

If you receive a contingent offer on your Las Vegas home, I can help you evaluate the risk and negotiate terms that protect your interests. Not all contingent offers are equal, and knowing how to assess them matters.

Have questions about an offer you have received? Reach out directly to discuss your situation, or request a free home evaluation if you are just getting started.

Frequently Asked Questions About Home Sale Contingency Offers

Q1: What is a home sale contingency?

A home sale contingency is a condition in a purchase offer that makes the buyer's ability to purchase your home dependent on them successfully selling their current home first. If their home doesn't sell, they can back out of buying yours, usually without penalty and with their earnest money returned.

Q2: Should I accept an offer with a home sale contingency?

It depends on your situation. Consider accepting if you have no other offers, the buyer's home is already under contract or highly marketable, you're not in a hurry, or the offer is otherwise strong. Decline if their home isn't listed yet, appears difficult to sell, you have other interested buyers, or your timeline is tight.

Q3: What is a kick-out clause and how does it protect me?

A kick-out clause (or bump clause) allows you to continue marketing your home even after accepting a contingent offer. If you receive another offer, you notify the contingent buyer and they have 24-72 hours to remove their contingency or you can accept the new offer. This keeps your options open and reduces risk.

Q4: How long does a home sale contingency typically last?

The length varies, but contingencies typically last 30-60 days, though they can be longer. It's important to negotiate an expiration date after which you can cancel if their home hasn't sold. The timeline depends on whether their home is already listed, under contract, or not yet on the market.

Q5: What questions should I ask before accepting a contingent offer?

Ask if their home is listed and at what price, how long it's been on market, whether they're working with a good agent, if they've received any offers, and what their drop-dead date is. You should also research whether their asking price is realistic for their market.

Q6: Is a contingent offer better than no offer?

If your Las Vegas home has been sitting on the market with no activity, a contingent offer may be worth considering as it provides at least a potential path to closing. However, carefully evaluate the buyer's situation and always include protective terms like a kick-out clause before accepting.

Q7: What happens if the buyer's home doesn't sell?

If the buyer's home doesn't sell within the contingency period, they can legally back out of purchasing your home and typically receive their earnest money back. This means you'll need to start the selling process over, having potentially lost valuable time on the market.

Q8: Can I negotiate the terms of a home sale contingency?

Yes. You can require their home to be listed within a specific timeframe, include a kick-out clause, set an expiration date for the contingency, and require their home to be priced reasonably. Negotiating protective terms is essential if you decide to accept a contingent offer.

Q9: Are contingent offers common in the Las Vegas real estate market?

Contingent offers occur in Las Vegas like any market, but their frequency depends on current market conditions. In a seller's market with high demand, you're less likely to need to accept contingent offers. In a buyer's market or slower conditions, they become more common and may need consideration.

Q10: What's the biggest risk of accepting a home sale contingency?

The biggest risk is tying up your property while waiting for the buyer's home to sell, potentially losing other qualified buyers in the process. If their sale falls through after weeks or months, you'll have lost valuable market time and may need to re-list at a less favorable time or price.