A contingent offer says you will buy the home only if your current home sells. It protects you from owning two homes, but sellers weigh it against offers that do not depend on anything. Here is how it works on the Georgia forms.
The exhibit
Georgia REALTORS publishes a contingency exhibit for the sale of the buyer’s property; in the 2020 forms it is F601, with options for whether the seller keeps a kick-out right. With a kick-out, the seller can keep marketing the home; if a better offer comes, you get a deadline to remove your contingency or step aside.
How it sits with due diligence
Your contract can also give you a due diligence period, which lets you walk away for any reason until it ends. Sellers notice when an offer has both a long due diligence period and a sale contingency. Keep both as short as your situation honestly allows.
Making a contingent offer stronger
- List your current home first, or have it under contract already, and say so.
- Show a pre-approval that addresses your current home; lenders may otherwise count both payments.
- Offer a reasonable deadline for your sale and accept a kick-out right.
- Be flexible on the seller’s closing date.
When to skip it
If you can bridge the down payment, or sell first with a rent-back, you can offer without the contingency. Compare the options in the matcher.