On this page
- What a contingent offer is: the four common contingencies
- Contingent vs. pending: can you make an offer on a contingent house?
- How a home sale contingency works
- If you are the buyer: making a contingent offer work
- Alternatives to a home sale contingency
- If you are the seller: should you accept a contingent offer?
- How to compete with a contingent offer
- Contingent offer FAQ
- Your next step
A contingent offer is an offer to buy a home that depends on a condition the buyer must meet, most often selling their current home. If the buyer meets the condition by the contract deadline, the sale goes ahead; if not, either side can usually walk away. A buyer can usually still make an offer on a contingent house as a backup, and the contract may let the seller keep marketing the home. A seller should weigh the buyer’s pre-approval, whether the buyer’s home is listed and priced to sell, and how long the contract says they must wait.
What a contingent offer is: the four common contingencies
A contingency is a condition written into the purchase contract. Until the buyer meets it or removes it in writing, the buyer can usually cancel under the contract’s terms. The Consumer Financial Protection Bureau (CFPB) suggests making an offer contingent on financing and on a satisfactory inspection, so a buyer is not bound to buy if the loan falls through or the inspection finds serious flaws.
Most contracts use some mix of these four:
| Contingency | What it protects | If the condition is not met |
|---|---|---|
| Home sale | The buyer, who does not have to buy before their current home sells | The buyer can usually cancel; the seller can also cancel after the deadline |
| Financing (mortgage) | The buyer, if the lender does not approve the loan | The buyer can withdraw the offer |
| Appraisal | The buyer, if the home appraises below the price | The buyer can renegotiate, cover the gap in cash, or withdraw |
| Inspection | The buyer, if the inspection turns up costly problems | The buyer can ask for repairs or a lower price, or withdraw |
Contingencies matter most for the deposit. Buyers usually put down earnest money once the seller accepts. When a buyer cancels under a contingency on time and as the contract requires, the deposit is usually returned. However, a buyer who misses a deadline or backs out for a reason the contract does not cover can lose it. See legitimate reasons you can get out of your offer on a house.
Contingent vs. pending: can you make an offer on a contingent house?
In many listing systems, “contingent” means the seller has accepted an offer but conditions are still open. “Pending” usually means the contingencies are met and the sale is moving to closing, according to Zillow’s explainer on the two statuses. Some systems add labels such as “contingent, continue to show” or “active under contract.” Since the labels differ by multiple listing service (MLS), ask your agent what a status means in your area.
You can usually make an offer on a contingent house. Your offer typically becomes a backup offer, which moves up if the first deal falls apart. Also, if the first contract has a kick-out clause, your offer can push the first buyer to act.
How a kick-out clause works
A kick-out clause lets the seller keep marketing the home after accepting a contingent offer. Some contracts call it a 72-hour clause, a right to continue marketing, an escape clause or a first right of refusal. When the seller accepts another offer, the first buyer gets a set period to drop the home sale contingency or step aside.
The addendum sets how many days the first buyer has to respond after the seller’s notice, and the parties can negotiate that number. To stay in the deal, the buyer usually has to drop the home sale contingency and show they can close without selling first. Terms differ by state and by contract, so the period in your contract is the one that counts.
How a home sale contingency works
A home sale contingency makes the purchase depend on the buyer selling and closing on their current home. The contract sets the deadlines. Typically, it gives the buyer a set number of days to get their current home under contract and a date by which that sale must close.
In a typical sequence, the buyer lists their home, accepts an offer on it, and sends the seller proof. Next, the buyer’s sale closes and the proceeds fund the new purchase, often on the same day.
If the buyer’s home does not sell in time, the contract decides what happens. Usually, either side can cancel on the terms the contract spells out. Often, the two sides agree to extend instead. Deals do fail: Redfin reported on October 12, 2026 that 14.5% of home purchase agreements that went under contract in September 2026 were canceled. That figure covers every canceled contract, contingent or otherwise.
Next, see what happens after your offer is accepted.
If you are the buyer: making a contingent offer work
A buyer who still owns a home faces two problems. First, sellers often prefer offers without a home sale contingency. Second, the lender may count both housing payments.
The mortgage side: two housing payments on paper
Lenders measure your debt-to-income ratio (DTI), monthly debts divided by gross monthly income. Under Fannie Mae’s Selling Guide B3-6-06 (dated September 2, 2026), if your current home will not close before the new purchase, the lender must count the PITIA (principal, interest, taxes, insurance and association dues) on both homes. The old payment drops out only if you provide the executed sales contract on your current home and proof that its buyer’s financing contingencies are cleared.
Say a buyer earns $10,000 a month before taxes and pays $500 a month on other debts. Their current home’s PITIA is $2,000, and the new home’s would be $3,000. With both counted, the DTI is 55%. Once the old home is under contract with financing contingencies cleared, it falls to 35%.
A lender can issue a mortgage pre-approval “subject to” the sale of your current home, but the lender decides. This is Fannie Mae’s rule for conventional loans; FHA, VA and individual lenders apply their own.
How to make a contingent offer stronger
These steps make a contingent offer easier to accept:
- Get a pre-approval that accounts for the home you own.
- List your home before you make the offer, or have it under contract.
- Price your home to sell. Ask your agent for a comparative market analysis, a report on recent nearby sales.
- Ask for a shorter contingency period.
- Offer more earnest money, knowing more of your money is at risk.
- Agree to a kick-out clause.
- Stay flexible on the closing date, or offer the seller a rent-back after closing.
Do not waive your inspection or financing contingency to compete. Waiving a protection can cost you the deposit if the loan or the house falls through. Removing a contingency is your decision, so make it with your agent or a real estate attorney. For the rest of the offer, see how to make an offer on a house.
Alternatives to a home sale contingency
A bridge loan borrows against your current home to fund the new purchase. Under Fannie Mae’s Selling Guide B3-6-05 (dated August 5, 2026), it counts in your DTI unless you have a fully executed sales contract on your current home and any financing contingencies are cleared. Read more about how a bridge loan works.
A home equity line of credit (HELOC) on your current home can supply the down payment. Open it before you list, and ask the lender whether it will open a line on a home that is listed for sale. Any required payment also adds to your debts.
An 80-10-10 piggyback loan pairs a first mortgage for 80% of the price with a second loan for 10%, plus 10% down. Because the first mortgage covers only 80%, you avoid private mortgage insurance, which the CFPB says a conventional loan does not require with 20% down. As a result, you need less cash before your old home sells, though your DTI does not fall. See how an 80-10-10 piggyback mortgage works.
Selling first and renting back removes the contingency entirely. You close on your sale, then stay in the home under a rent-back (post-closing occupancy) agreement. The contract sets the rent, the deposit and the move-out date.
Buying first with two mortgages works if your income supports both payments. If you plan to rent out the old home, Fannie Mae’s new departing residence rules apply to applications from December 1, 2026 (Announcement SEL-2026-08). Under them, the lender counts 75% of market rent, does not accept a lease, and may require six months of reserves for the old home.
If you are the seller: should you accept a contingent offer?
A contingent offer can work when the details behind the price hold up. Go through these questions with your agent:
- Is the buyer pre-approved? Ask for the letter, and ask whether it accounts for the home they own.
- Is the buyer’s home listed? Find out the price and how long it has been for sale. Your agent can judge whether it is priced to sell.
- Is the buyer’s home under contract? Then your risk drops, though their buyer can still fail.
- What is the deadline? Look for firm dates for the buyer’s home to go under contract and to close.
- Is there a kick-out clause? Then you can keep showing the home and take a backup offer, which gives you a next buyer if the first deal fails.
Compare offers on net terms as well as price: a higher offer that closes months late, or never, can net you less. Because contracts and state rules differ, ask your agent or a real estate attorney to review the terms. For more, see these tips for selling your home.
Pros and cons of accepting a contingent offer
| Pros | Cons |
|---|---|
| More buyers can bid, since many need to sell first | Your sale depends on someone else’s sale |
| It may bring a higher price | Closing can slip past your target date |
| A kick-out clause lets you keep marketing | Fewer buyers may tour a home marked contingent |
| A backup offer keeps a second buyer ready | If the deal fails, you relist and start over |
How to compete with a contingent offer
When a home you want already has a contingent offer, you can:
- Make a backup offer. If the first deal fails, you move up without a new bidding round.
- Make a clean offer. An offer with no home sale contingency and a strong pre-approval can trigger a kick-out clause.
- Shorten your timeline. A quick inspection period and an early closing date give the seller certainty.
- Use an escalation clause. It raises your price by set steps above competing offers, up to a cap you choose.
Contingent offer FAQ
What does a contingent offer mean?
It means the offer depends on a condition, such as selling the buyer’s home, getting a mortgage or a satisfactory inspection. If the condition is not met by the deadline, either party can usually cancel.
Can you make an offer on a contingent house?
Usually, yes. Most sellers take backup offers, and a kick-out clause lets your offer force the first buyer to commit.
How long do contingent offers last?
The contract sets the deadline, and the buyer and seller can negotiate it. Read the dates in your own contract, and ask your agent what is common in your area.
Should I accept a contingent offer on my house?
It depends on the buyer’s strength and how long you can wait. Check their pre-approval, whether their home is listed or under contract, and whether the contract has a firm deadline and a kick-out clause.
Can a seller accept another offer while contingent?
Only if the contract allows it. With a kick-out clause, the seller can accept another offer and the first buyer gets a set period to remove the contingency. Otherwise, the seller can usually take only a backup offer.
Can I get pre-approved for a mortgage if I haven’t sold my house?
Often, yes. The lender may count both housing payments or write the pre-approval subject to the sale. Under Fannie Mae’s rules, the old payment drops out once your home is under contract and its buyer’s financing is cleared.
Your next step
If you still own a home, talk to a lender first. A pre-approval that accounts for your current home tells you whether you need a home sale contingency, or whether a bridge loan or HELOC could let you make a cleaner offer.
