Navigating Contingent Contracts
Contingencies are back. If you got your license during the COVID market, you may have never dealt with one. If you've been around long enough to remember them, welcome back — it's time to brush up.
This episode is a nuts and bolts deep dive into what happens when a buyer has to sell their home before they can buy. Katy and Alissa walk through both sides of the table — listing agent and buyer's agent — with real stories, real mistakes, and real lessons that will save you from a very painful closing day surprise.
Fair warning: one of these stories ends with a lender confirming the buyers lied about their ability to remove their contingency. Alissa found out just in time. Barely.
Here's what we cover in this episode:
- What a contingency contract actually is — and what it is not (this is not about inspection or financing contingencies)
- Why contingent offers are making a comeback in a shifted market
- Episode 65: Buying and Selling at the Same Time — the companion episode to share with your clients
- What to ask before you even present a contingent offer to your seller: is it listed, how long, what's the market activity, who's the lender
- Why a house not yet on the market is usually a hard no — and the only conditions that might change that
- How to counter a contingent offer as the listing agent: terms to put in writing and why
- The 90-day contingency story: what happens when you extend too long, the buyers shop the market during inspections, and the house is still on the market
- Why you should stop sending new listings to a buyer who is already under contract on a home
- When you receive a better offer while under contingent contract — and what to do in the next 48 to 72 hours
- The buyers who said they could remove their contingency — and couldn't
- How Alissa caught it: by calling the lender directly (and why the buyer's agent never did)
- Why you are babysitting two transactions when a buyer is contingent — and what that actually means
- When can a contingency actually be removed? The answer might surprise you
- Handling out-of-state contingencies: what to ask and who to trust
- The contingency form in your market: pending vs. active, and what to counter
- When both closings are happening the same day — and why they should be at the same title company
- The right wording to put a hard stop on your contingency timeline without locking yourself in limbo
Referenced episodes:
- Episode 65: Buying and Selling at the Same Time
Toast of the week goes to Cat Dunn in Kalispell, Montana, toasted by her mentee Galena Vaynerchuk. Cat has offered the perfect balance of tough love and gentle encouragement — and kept Galena going in real estate from the very beginning. Cheers to Cat!
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Music:
Straight A's by Connor Price → https://connorprice.shop/
The Good Life by Summer Kennedy → https://soundcloud.com/summerkennedy/the-good-life
Be The One by Matrika → https://uppbeat.io/t/matrika/be-the-one
