Should You Accept a Contingent Offer in South Metro Denver?

Should you accept a contingent offer on your South Metro Denver home?

Accept it only if the buyer's other sale looks likely to close on a timeline you can live with, and the contract gives you written deadlines and a clear path to keep marketing. A contingent offer in South Metro Denver can carry a stronger headline price than a clean one, but you're taking on the risk of a second transaction you don't control. The higher price is only worth it if it beats the cost of waiting and the chance of starting over.

Key Takeaways

• Recent local market data for the Denver area shows a median sale price of $574,000 for homes sold in roughly the last 90 days, which is the area-level benchmark to hold any contingent premium against.
• With 3,505 homes for sale now and 888 new listings in the last 30 days, buyers have real choices, so a signed offer at a solid price deserves serious weight even with a contingency attached.
• The median time from listing to going under contract was 23 days for recently sold homes in the Denver area, but that only counts homes that sold, so the buyer's home is not guaranteed that pace.
• A contingent offer is a bet on someone else's list price, condition, and eventual buyer, so ask for proof the buyer's home is listed or under contract.
• Your rights to keep marketing, give notice, or terminate come from the executed Colorado contract and any addenda, not from a generic "kick-out clause" idea.

What risk are you really taking on with a contingent offer?

You're taking on dependency: your sale only closes if the buyer's own sale (or closing) happens first. The price on the page can look great while your timeline quietly rides on a listing you've never seen.

Is a home-sale contingency different from a home-close contingency?

Yes, and the difference is the milestone the buyer must hit. In general terms, a home-sale contingency is satisfied at an earlier point (their home going under contract), while a home-close contingency waits until their sale actually closes. Which one you have depends on the exact wording in the contract, so read that language before you compare offers.

I find it helpful to break the dependency into separate milestones and ask where the buyer stands on each:

1. Is their home listed yet?
2. Is there an accepted contract on it?
3. Have their buyer's contingencies been removed?
4. Is their closing date confirmed, and does it line up with yours?

What does waiting cost you?

Waiting has real costs even when nothing goes wrong: your mortgage, taxes, insurance, and utilities keep running, and your own next move may be on hold. If the chain breaks, you may relist after weeks off the market. If the buyer's lender needs an appraisal on their home and yours, you also have more places for a surprise. I cover how that plays out from the buyer's chair in Home Appraises Below Your Offer? What Colorado Buyers Do.

How do you compare a contingent offer to a clean one?

Compare certainty separately from price. Line the offers up on financing approval, proof of funds, the status of the buyer's home, and the outside closing date, then put an honest value on the time you'd be waiting.

Here are the fields I use when I sit down with a seller and a stack of offers:

• Financing approval: pre-approval or full underwriting, and whether the loan depends on the other sale.
• Cash reserves: proof of funds for the down payment and closing costs, independent of their sale proceeds where possible.
• The buyer's property: listed or not, asking price relative to verified comparables, and any accepted contract.
• Outside closing date: the latest date the buyer must close or the deal can end.
• Your exit rights: what you can do while the contingency is open.

Specific thresholds and timelines aren't standardized. They're whatever you negotiate and write into the contract. Your specific numbers depend on your home, your next move, and what the other offers look like, and that's what a local market analysis is for.

What proof should you ask a contingent buyer for?

Ask for documents that show where their sale actually stands, not a verbal "it's about to go." Useful items include:

• Their listing agreement or the active listing for their home.
• The accepted contract on their home, once there is one.
• Their lender's pre-approval or approval letter.
• Proof of funds for the down payment and closing costs.

I'd also have an agent run comps on their home. A buyer whose home is listed well above what comparable sales support is a very different risk than one priced to move.

Can you require the buyer to list first?

You can counter with that condition. Nothing forces you to accept an offer exactly as written, so you can ask that their home be listed within a defined window and at a price that comps support. Whether they agree is a negotiation, and a buyer who balks at listing is telling you something about how firm their plan is.

What protections should you negotiate if you accept?

Negotiate written deadlines and your right to keep marketing, then confirm every mechanic in the executed Colorado contract. The Colorado Division of Real Estate states that brokers must use Commission-approved contracts and forms when applicable, and the residential Contract to Buy and Sell Real Estate is the document your deal will live inside.

Don't rely on an old template or a generic explanation of a "kick-out clause." Whether you can pursue a replacement offer, what notice you must give, how long the first buyer has to respond, and what happens if they can't proceed all depend on the language in the executed contract and any attached addenda. I walk my clients through that language line by line before we sign anything.

These are the questions your contract needs to answer clearly:

• Can the home stay on the market and keep being shown while the contingency is open?
• If another buyer makes an offer, what notice goes to the first buyer, and how long do they have to respond?
• Can the first buyer remove the contingency to keep their deal alive, and on what terms?
• What deadlines apply to listing their home, getting it under contract, and removing their own contingencies?
• What happens on the outside date if their sale hasn't closed?

If a term is vague, fix it before signing, not after. Your closing agent handles the settlement side, but the contingency terms are set between you and the buyer, so they need to be right at the offer stage.

What do South Metro Denver conditions say about taking the risk?

Current conditions give buyers plenty of choice, so a signed offer at a good price deserves real weight, but the number that decides it is your own home's comparable sales. Recent local market data for the Denver area shows 3,505 homes for sale now, 888 new listings in the last 30 days, and 2,009 homes sold in roughly the last 90 days. The median sale price for those sales was $574,000, and the median time from listing to going under contract was 23 days for recently sold homes.

That 23 days is a useful reference point, but it only describes homes that sold. It says nothing about the ones that sat, which is exactly the risk when your buyer's home isn't under contract yet. And when buyers can pick from thousands of listings and sellers are cutting prices or offering concessions, a clean, firm offer at a reasonable number can be worth more than a higher contingent one that might fall apart.

Values also vary by city across South Metro Denver. These are area-level medians for homes sold in roughly the last 90 days, and your home's value depends on condition, street, build year, and timing:

If the market is giving buyers leverage, a contingent offer may be the best one you see, or it may be the one that costs you the most time. To judge that, you need your home's comps, not just the medians. I break down pricing against buyer options in Price a Home in South Metro Denver When Buyers Have Options, and if you're already weighing a reduction, Should You Lower Your South Metro Denver Asking Price? covers that decision.

Accepting a contingent offer comes down to proof, deadlines, and your exit rights, weighed against a market where buyers have options. If you have an offer on the table or expect one, I'll walk through the terms with you and show you what your home's recent comparable sales support. You can get a free home valuation here and we'll go from there.

If you'd like to see how I work with clients, you can read my reviews on Google and Zillow.

FAQ

Should I accept an offer that depends on the buyer selling their current home?

Only if the price premium justifies the added risk and the contract protects you. Ask for proof their home is listed or under contract, set written deadlines, and make sure you can keep marketing. If the offer is only slightly higher than a clean one, the clean offer is usually the safer choice.

What is the difference between a home-sale contingency and a home-close contingency in Colorado?

A home-sale contingency generally ties the deal to the buyer getting their home sold or under contract, while a home-close contingency generally waits until their sale actually closes. The exact trigger depends on the wording in your executed contract and any addenda, so confirm which milestone applies before you accept.

Can I keep showing my South Metro Denver home after accepting a contingent offer?

It depends on what the contract says, so get it in writing before you sign. Continuing to market the home, and what notice you owe the first buyer if another offer arrives, are negotiated terms. Don't assume you have that right just because the contingency exists.

What happens if another buyer makes a better offer while my home is under contract?

What you can do is controlled by the executed contract. It determines whether you can pursue a replacement offer, what notice the first buyer receives, how long they have to respond, and whether they can remove their contingency to keep the deal. Review the contract on the Colorado Division of Real Estate's residential form and any addenda with your agent before you act.

What proof should I request from a buyer whose offer depends on another sale?

Ask for the listing agreement or active listing for their home, the accepted contract on it once there is one, their lender's approval letter, and proof of funds for the down payment and closing costs. Have your agent also check their asking price against comparable sales. The Division of Real Estate's forms page is a good starting point for the contract you'll be working from.

Equal Housing Opportunity. Zach Otten, licensed real estate broker with Real Broker, LLC, regulated by the Colorado Division of Real Estate. This article is general information, not legal, tax, or financial advice. Confirm your own numbers and contract terms with your closing agent, tax advisor, or lender.