Contingent offers: will a Palm Beach seller accept one?

Frequently Asked Questions

What is a contingent offer?

An offer conditional on something else happening, most commonly the sale of the buyer's existing property. It asks the seller to accept a risk they did not create and cannot control, which is why it is the weakest position available in a negotiation.

Will sellers accept one?

It depends on the market, the property and how far along your own sale is. In competitive segments they are frequently dismissed without discussion. In slower ones, or thin segments with few buyers, sellers are considerably more willing to work with one.

How do I make my contingent offer stronger?

Get your own property listed and ideally under contract first, provide evidence of that, price it to sell quickly, offer a larger deposit, shorten your other contingencies, and offer a kick-out provision so the seller can keep marketing.

What is a kick-out clause?

A provision letting the seller continue marketing and accept a better offer, subject to giving you notice and a defined period to remove your contingency or step aside. It makes your offer far more acceptable and creates a real risk of losing the property.

I received a contingent offer. How do I judge it?

Ask exactly where the buyer's property is in the process, see the listing, check the price against its market and how long it has been listed. A well-progressed contingency from a realistic seller is completely different from a hopeful one.

Should I take the property off the market if I accept one?

No. Negotiate a kick-out provision, keep the listing visible, continue showings and seek a backup offer. A backup is the best protection available, and monitoring the other property's progress beats assuming it is going well.

Is a contingent offer better than no offer?

Sometimes, particularly in a thin segment. Compare it against your alternatives on net proceeds while factoring in the risk rather than ignoring it. A contingent offer that fails costs you the marketing weeks and leaves the listing with a history.

How much does being under contract help?

Substantially, and more than most people expect. The difference in offer strength between listed and under contract is often larger than anything you could negotiate on price, which is why sequencing your own sale first is usually the better investment.

What are my alternatives?

Sell first with a rent-back, buy first using bridge financing, sell first and rent short term, or make a non-contingent offer and carry the risk yourself. Each has a different kind of cost, so compare them on one sheet rather than defaulting.

Does it matter which community I am buying in?

Considerably. The same offer can be strong in one community and unacceptable in another a mile away, and our seasonal pattern makes winter behave differently. Ask what has actually been happening in that specific community rather than generalising.

How long should the contingency period be?

Long enough to be realistic for your property and short enough that a seller will accept it, which is a genuine tension. Base it on what comparable properties in your community are actually taking rather than on what you hope.

What happens to my deposit if my sale falls through?

That depends entirely on how the contingency is drafted, which is why the wording matters more than the concept. A properly drafted provision returns the deposit if the contingency is not satisfied. Read it rather than assuming.

Can I remove the contingency early?

Yes, and doing so voluntarily once your own sale is secure strengthens your position considerably. It also commits you, so only do it when your buyer has cleared inspection and financing rather than simply when a contract has been signed.