What Happens When Your Offer Is Contingent and Another Offer Comes In?

You’ve found the home you love, submitted an offer, and the seller has accepted! There’s just one catch: your purchase is contingent on selling your current home.

Then you get the news that can make any buyer nervous: The seller has received another offer. Now what?

First, don’t panic. An accepted contingent offer is still a contract. Receiving another offer doesn’t automatically mean you’ve lost the home. However, what happens next depends on the specific terms of your purchase agreement.

Let’s break it down.

What is a contingent offer?

A contingent offer means your purchase depends on certain conditions being met before the transaction can move forward.

One common example is a home-sale contingency. This means you need to sell your current home before you can complete the purchase of your next one.

This arrangement can make sense financially, especially if you need the proceeds from your current home to purchase the next one. However, it can make your offer less attractive to a seller who may have other interested buyers.

What happens if the seller receives another offer?

This is where something called a kick-out clause, sometimes referred to as a bump clause, may come into play.

If your accepted offer includes this provision, the seller may continue marketing and showing the property while your home is being sold.

If another acceptable offer comes in, the seller can invoke the terms of the kick-out clause and give you a specified amount of time to respond.

Typically, you’ll have two choices:

1. Remove the contingency and move forward.

If you are financially able and still want the home, you may be able to remove the home-sale contingency and proceed with the purchase, even if your current home hasn’t sold.

This is a significant decision. Before agreeing, make sure you understand how you will fund the purchase and whether you can comfortably manage the financial risk.

2. Decline to remove the contingency.

If you aren’t comfortable moving forward without selling your current home first, you may choose not to remove the contingency.

Depending on the contract language and the required notice procedures, the seller may then be able to terminate the original agreement and move forward with the other buyer.

What if your offer doesn’t include a kick-out clause?

This is an important distinction!

If your offer has been accepted without a kick-out provision, the seller generally cannot simply cancel your existing contract because another offer comes along.

The seller may be able to accept a backup offer, but that doesn’t automatically give them the right to walk away from their existing agreement.

Your original purchase agreement and its specific terms matter.

Can you lose the house even after your offer has been accepted?

Yes, potentially—but not simply because another buyer is interested.

If your contract includes a kick-out clause, you could lose your position if you aren’t able or willing to meet the requirements within the specified timeframe.

This is why it’s so important to understand the terms of your offer before signing, rather than trying to figure everything out when another offer appears.

How can you protect yourself as a buyer?

If you’re making an offer contingent on selling your current home, there are a few things worth discussing with your agent:

• Understand the contingency: Know exactly what must happen before you can move forward.
• Review the kick-out provision: Understand the notice requirements and how much time you’ll have to respond.
• Have a backup financial plan: Consider whether you could purchase without first selling your existing home.
• Know your current home’s market position: A home that’s already listed, well-priced and attracting interest may put you in a stronger position than one that hasn’t hit the market yet.

The bottom line

A contingent offer doesn’t mean you can’t successfully purchase your next home. It simply means there are additional moving parts that need to be understood and managed.

The good news? With the right preparation, a clear understanding of your contract and an agent who is looking out for your interests, you can navigate these situations with much more confidence.

Buying and selling at the same time can feel like a juggling act. Having someone help you understand your options before the pressure is on can make all the difference.