For many homeowners, receiving an offer on their property feels like the final step before moving forward. However, experienced estate agents warn that not all offers carry the same level of certainty, particularly when buyers still need to sell their own homes first.
According to Antonie Goosen, , contingent offers can create significant risks for sellers if not managed carefully. “A contingent offer is not necessarily a bad offer, but it does introduce additional layers of uncertainty that sellers need to understand clearly.”
These offers, often called “subject to sale” agreements, typically depend on the buyer successfully selling an existing property before proceeding with the purchase.
Goosen says the biggest risk is timing. “The seller’s property can effectively be tied up for weeks or even months while the buyer tries to secure a sale elsewhere. During that period, other potential buyers may disappear.”
According to Goosen, the first step is thoroughly assessing the strength of the buyer’s existing property position. “We look at whether the buyer’s home is already on the market, how long it has been listed, whether it is priced realistically, and what demand exists in that area.” He adds that a buyer whose property has not yet been listed represents far greater risk than someone who already has active interest or an existing offer.
“The stronger the buyer’s own selling position, the lower the risk to the seller.”
Another important factor is the time period attached to the contingency clause. “You never want open ended uncertainty. There should always be clearly defined timelines and performance milestones.”
Goosen says experienced agents also negotiate protective clauses that allow sellers to continue marketing the property under certain conditions. “One of the most effective tools is a continued marketing clause, where the seller may continue showing the property while the contingent buyer works on their sale. In some cases, sellers may retain the right to accept stronger backup offers if the original buyer cannot remove the contingency within a specified period. That creates accountability and reduces the risk of the seller losing momentum in the market," he explains.
He explains that communication becomes especially important during contingent transactions. “You need constant updates on the buyer’s progress, including viewing activity, offers received, financing developments, and any delays. Financial qualification remains essential even when a buyer intends selling first. A contingent buyer should still demonstrate financial credibility. We want confirmation that they are bond capable once their existing property sells".
Market conditions also influence how risky contingent offers may be. “In a strong seller’s market, sellers often have the luxury of rejecting contingent offers entirely because demand is high. In slower markets, sellers may need to consider them more seriously. However, he warns sellers against focusing only on headline price. A contingent offer may sometimes be higher on paper, but a clean offer with fewer conditions can ultimately be far more valuable," says Goosen.
Jacques Vorster, Principal of Century 21 Helderberg, Stellenbosch, Hermanus & Kleinmond and surrounds, believes that contingent offers can work well, but only if they are structured correctly. The biggest mistake sellers make is tying up a property for months with no real protection.
"I always make sure timelines are clearly defined and realistic. There must be deadlines for the buyer to sell their property, secure finance and remove suspensive conditions. I’m also a big believer in escape clauses because they give the seller flexibility if a stronger offer comes in.
"Most importantly, I investigate the buyer’s existing property properly. Is it already on the market? Is it priced correctly? Who is marketing it? If the property they need to sell is sitting R2 million above market value with blurry cell phone photos, we have a problem. A contingent offer should never leave the seller feeling trapped," he says.
Emotional decision making can also create problems.
“Sellers understandably become excited when they receive an offer, but they need to evaluate the quality and certainty of that offer carefully". He says experienced estate agents play a crucial role in protecting clients from unnecessary exposure. “A well structured contingent agreement can work successfully, but it requires proper management, realistic timelines, and careful legal drafting.”
According to Goosen, the goal is always to balance opportunity with protection. “You want to give genuine buyers a fair opportunity while still protecting the seller’s ability to achieve a successful and timely sale.”
