On this episode of Go Gaddis Real Estate Radio, we’re tackling one of the trickiest parts of real estate transactions: contingency offers. Whether you’re buying or selling, these offers can completely change the dynamics of your deal — and knowing how to handle them could save you thousands.
We’ll break down what a contingency offer really is, why buyers use them, and why sellers sometimes accept them. From home sale contingencies to financing and appraisal clauses, I’ll explain how these conditions work and what they mean for your timeline, your money, and your stress levels.
You’ll hear the advantages for buyers, like reducing the risk of carrying two mortgages or moving twice. But we’ll also talk about the pitfalls: weaker offers in competitive markets, the dreaded “kick-out clause,” and how quickly things can fall apart if your home doesn’t sell. For sellers, contingent offers can sometimes mean a higher price or highly motivated buyers — but they also come with risks like longer timelines and the uncertainty of chained deals.
Most importantly, I’ll share strategies to protect yourself. For buyers, that means pricing your home right, preparing it for market, and asking for realistic timelines. For sellers, it could mean requiring proof the buyer’s home is listed, keeping your property on the market, and negotiating shorter contingency periods.
At the end of the day, contingency offers aren’t good or bad in themselves — they’re tools. And like any tool, the key is knowing how to use them to your advantage.
Stay tuned, because in our next segment, I’ll uncover the contract clauses that may sound harmless but could cost you thousands if you’re not paying attention.