Sellers are often reluctant to accept an offer from a Buyer that is contingent on the sale of another property. The majority of the time a Buyer will make an offer that is contingent of the sale of their home, which is currently in contract and scheduled to close soon. Yes, this adds a whole new layer of potential things that can go wrong because a seller has no control and very little information to go on.
However, when market conditions are favorable for Sellers, deals are much less likely to fall apart and this can be to their advantage. The main reason for higher success rates is banks are more eager to lend and buyers are more anxious to buy when prices are rising. These factors make inspections and appraisals less likely to jeopardize transactions. Another important point for Sellers to consider, when a Buyer has a house in contract, they have a contractual obligation to move. Therefore, if the Buyer doesn’t close on your house, they still have to move into temporary housing or stay with family or friends. Anyone who has recently moved can relate to what an unpleasant process moving twice can be, especially with kids and pets. Based on these factors, Sellers can get premium pricing and minimal resistance during the transaction.
In spite of the potential upside, Sellers should always be cautious before accepting a contingent offer. Be sure to ask for a copy of the Buyers purchase contract and confirm which contingencies have and have not been meet.