How to Accept an Offer on a Home Contingent on the Sale of the Buyer's Home

Not all buyers are created equal. A buyer who has yet to sell his other home is still an eligible buyer, but you want to proceed with caution.

Instructions

1. Get documentation to verify the buyer has the wherewithal to buy your home. A letter of pre-qualification, or better yet, a letter of approval will tell you this.

2. Find out about the buyer's home. Learn if it is currently on the market, if there is a buyer for the property and, if so, when the projected closing date is.

3. Inquire if your prospective buyer's employer can buy the house if your buyer can't sell it.

4. Ask for a copy of the contract on the buyer's home. There may be contingencies to that sale that may hold up the closing, such as inspections that have to be done and approved.

5. Consider leaving yourself the option of accepting another offer by placing a 72 hour contingency on the acceptance. If you receive another offer, you must give the first buyers the right to remove the contingency within 72 hours or lose the deal.

Tips & Warnings

• Consider shopping the offer to other prospective buyers who've expressed an interest in your home and who don't carry such a contingency.

• If you do accept an offer with a contingency, try to use the same title company to keep the transaction flowing smoothly. This will usually cut down on time and added expenses since the documents won't have to be couriered to another company.

• Continue to market the property in hopes of receiving a better offer.

• A buyer's offer can be withdrawn any time prior to your acceptance.