Contingent offers are common in St. Johns County, but accepting one can put a seller's timeline at risk. The buyer's ability to close may depend on selling their own property first. That transaction introduces uncertainty the seller cannot control.
In a market attracting buyers from New York, the Northeast, and across the country, sellers benefit from understanding their options before an offer arrives.
Home-sale contingencies can expose St. Johns County sellers to delays if a buyer's existing home does not sell. Buy-before-you-sell financing programs may help eligible move-up buyers make offers without that contingency. A knowledgeable real estate advisor can help sellers evaluate these alternatives and weigh the risks of each offer.
Contingent Offers Put Sellers at a Real Disadvantage
Accepting a contingent offer can slow a seller's momentum, especially if they pause showings while waiting for the buyer's home to sell. The seller's timeline then depends on a separate transaction they cannot control.
The concern is the structure of the deal, not the buyer's intentions. A contingent offer ties the sale to a property the seller may know little about. Its location, condition, asking price, and local market can all affect how quickly it sells. If the buyer's home struggles to attract an offer, the seller may face weeks of uncertainty after preparing their own property for sale.
Laura's position on contingent offers has always been direct.
"You're going to take your house off the market while you wait for this person to sell their house when we know nothing about their house. We don't know the condition. We don't know where it is. It could be in California, New York. I would never advise that at all."
— Laura Ranneklev, Broker Owner, REMAX Welcome Home
Some Contingent Scenarios Deserve a Second Look
Some scenarios may seem like exceptions. What if the buyer's current home is already listed and under contract? What if the buyer is a neighbor whose property you recognize?
Even then, the status of the buyer's sale matters. Has the inspection period expired? Are any unresolved issues threatening the transaction? A home can be under contract and still fail to close.
Sellers should verify the buyer's progress rather than rely on assurances alone. More flexibility may make sense if the buyer's property is under contract, past inspection, and the other agent confirms progress. Even then, sellers should weigh the remaining risks before accepting the offer.
St. Johns County Homestead portability may also matter to move-up buyers planning their next purchase. Eligible Florida homeowners may transfer some or all of their Save Our Homes assessment difference to a new homestead, potentially lowering its assessed value. Buyers should consult a knowledgeable advisor about how that benefit fits into their plans.
Buy-Before-You-Sell Programs Offer Another Path
Rejecting a contingent offer is easier when buyers have another way to proceed. Experienced agents can discuss these options before a buyer submits an offer, helping keep negotiations moving.
One option is a buy-before-you-sell program. Planet Home Lending offers programs designed to help eligible homeowners purchase their next home before selling their current one. Depending on the program, buyers may be able to make an offer without a home-sale contingency. Understanding the homebuying process can help buyers prepare for the financing and offer stages. Program terms and eligibility requirements vary.
"I would call a lender like Planet Home Lending. My friend Tracy Hayes has a buy-now program where his company will buy that house so they can purchase the new one that they want. That's an option. But I would never take a house off the market for a contingency situation."
— Laura Ranneklev, Broker Owner, REMAX Welcome Home
Move-up buyers may have options that let them compete without asking sellers to wait for another sale. Discussing those options can help sellers evaluate offers based on their terms, risks, and likelihood of closing.
Not sure how to respond to a contingent offer? Contact the REMAX Welcome Home team to discuss your options before deciding how to proceed.
3 Things to Verify Before Accepting Any Offer
A motivated buyer may have options beyond a home-sale contingency. Before responding to an offer, a seller's agent should verify three things:
- Is the buyer pre-approved by a mortgage lender? Pre-approval provides a clearer picture of the buyer's borrowing capacity, though it does not guarantee final loan approval.
- What is the status of the buyer's current home? Is it actively listed, under contract, or not yet on the market?
- If the home is under contract, has the inspection period expired? Any unresolved inspection issues could still threaten the buyer's sale.
These answers help sellers assess the offer's risks and the likelihood of closing. The offer price, financing terms, and other contract provisions also matter. A knowledgeable advisor can help sellers evaluate these factors as part of the home-selling process.
Contingent Offers and Financing FAQs
What is a contingent offer in real estate?
A contingent offer depends on a condition being met before the purchase can proceed. One common example is a buyer who must sell their current home before purchasing another. The contract terms determine the deadlines, obligations, and options available if the condition is not met.
Why do some sellers hesitate to accept contingent offers?
A home-sale contingency can leave sellers waiting on another transaction before their own sale can proceed. Delays or problems with the buyer's sale may disrupt the seller's moving plans. Sellers should weigh these risks against the offer price, contract terms, and other available offers.
What is a buy-now program, and how can it help buyers avoid a contingency?
A buy-before-you-sell program may help eligible homeowners purchase another property before selling their current home. Depending on the program, buyers may be able to make an offer without a home-sale contingency. Program structures, costs, and eligibility requirements vary, so buyers should review the specific terms with the lender.
Are there situations where a contingent offer might carry less risk?
A contingent offer may present less risk if the buyer's current home is already under contract and has passed its inspection period. However, financing, appraisal, and other issues could still delay or prevent that sale. Sellers should verify the transaction's status and review the contingency terms before deciding whether to proceed.
How can accepting a contingent offer affect a seller's timeline?
A contingent offer can delay a seller's plans if the buyer needs to sell their current home first. The length of the delay depends on the contract deadlines and the progress of the buyer's sale. Sellers may be able to continue showings or consider backup offers if the contract permits it.
What should sellers ask before responding to a contingent offer?
Sellers should verify the buyer's financing status and determine whether the buyer's current home is listed, under contract, or not yet on the market. If it is under contract, they should ask about inspection results and any unresolved issues. The seller should also review the contingency deadlines and other contract terms with their real estate professional.
Do I need a separate buyer's agent if I'm also selling my current home?
Not necessarily. In Florida, a seller may work with one agent to sell their current home and help them purchase another, depending on the brokerage arrangement. Florida law does not permit a real estate licensee to act as a disclosed or undisclosed dual agent. A licensee may act as a transaction broker for both parties, providing limited representation rather than fiduciary representation. Buyers and sellers should understand the agent's role and the applicable disclosures before proceeding.
What does Planet Home Lending's buy-now program require from the buyer?
Qualification requirements vary based on the program, the buyer's financial situation, and the equity in their current home. These programs may help eligible move-up buyers purchase their next home before selling their existing property. Buyers can contact Planet Home Lending to review the program requirements and determine whether they qualify.
Prepare for Contingent Offers Before They Arrive
St. Johns County sellers can protect their timelines by understanding their options before offers arrive. Buy-before-you-sell programs may help eligible buyers make offers without a home-sale contingency, giving sellers another path to consider.
Laura and her team advise sellers across St. Johns County on evaluating offers and protecting their interests throughout the sale. Contact REMAX Welcome Home before your first showing to discuss how to prepare for contingent offers and other negotiations.
