Contingencies are happening more often in our current market, so you may hear the term “contingent offer” come up. Whether you are buying or selling, it is important to understand what it means and how it can impact your transaction.
At T. Kerr Property Group and Russ Phillips Team, we are all about education, empowerment, and helping you make smart, confident real estate decisions. Here’s a breakdown in plain language of what contingent offers are, how they work in Texas, and what you should know before saying yes.
What Is a Contingent Offer?
A contingent offer means that a buyer is willing to purchase a home if a certain condition is met. Most commonly, it means:
“We want to buy your house, but we need to sell ours first.”
In Texas, these contingencies are built into the contract, usually with the Texas Real Estate Commission’s Addendum for Sale of Other Property by Buyer.
This clause protects the buyer. If they cannot sell their current home by a certain date, they can terminate the contract and recover their earnest money.
If another offer comes in while they are under contract, the buyer is given a certain number of days to decide whether they want to waive or remove the contingency and move forward, or if they want to terminate with release of their earnest money. If they choose to waive the contingency and move forward, typically there will be an additional earnest money deposit as part of the terms.
Why Buyers Make Contingent Offers
- They need the equity from their current home to fund the new purchase.
- They want to avoid having two mortgage payments.
- They have confidence their home will sell quickly, especially in a strong market.
Contingent offers can work well, but they require trust, strategy, and a clear understanding of timelines.
What Sellers Should Know
If you receive a contingent offer, pause and ask:
- Is their home already listed or under contract?
- How hot is their market, and is it priced correctly?
- Do I have other non-contingent offers?
- How long am I willing to wait?
In a slower market or with a well-qualified buyer who has a home likely to sell quickly, accepting a contingent offer may make sense.
During the contingency period, your home is under contract and your options are limited. While you can still receive another offer, buyers often pass over homes that are already under contract. This reduces exposure and potential buyer interest.
We always evaluate the buyer’s listing strategy and run our own comps before advising sellers to accept a contingent offer.
The Pitfalls of Contingent Offers
- Missed opportunities: Your home is tied up and you could miss out on a stronger buyer.
- Longer timelines: There may be delays if the buyer’s home takes time to sell.
- Fall-through risk: If the buyer cannot sell, the deal falls through. This can be detrimental if your home has been under contract for several months and then re-enters the market during a weaker selling season.
How to Navigate Contingent Deals With Confidence
If you are a buyer:
- Have your current home market-ready first.
- Price it competitively.
- Get pre-approved so you appear stronger to the seller.
If you are a seller:
- Ask the right questions about the buyer’s home.
- Protect yourself with strong contract terms and a realistic timeline.
- Work with a team who will advocate for your best outcome.
Final Thoughts From T. Kerr Property Group and Russ Phillips Team
Contingent offers are not bad, but they are more complex. They require clear communication, market knowledge, and strong representation.
Whether you are buying or selling, you deserve a guide who knows how to navigate the moving parts and protect your goals. That is what we do.
Let’s talk strategy with no pressure and complete transparency. Visit tkerrrealestate.com to connect.
Serving clients across Williamson, Travis, and Bell County with earned expertise and elevated care. Because legacy is built one smart move at a time.
Want to know more about the team?
The T. Kerr Property Group and Russ Phillips Team are the #1 team in Williamson County for listings sold and buyers represented, with over $100,000,000 in projected sales for 2025. With a combined experience of more than 3,000 transactions closed, the team has earned numerous accolades, including the prestigious Platinum Top 50 Award. They have been voted Best Real Estate Team in Georgetown and named runner-up for Best Real Estate Agent in Round Rock. Their achievements also include receiving the Austin Business Journal Residential Real Estate Award, which recognizes top production in the industry, and being featured in Real Producers Magazine. Additionally, Tanya Kerr has been honored with a nomination for the Austin Business Journal’s Women in Business Award.