How should a seller compare this type of offer?
Start with certainty, timing, and estimated net. A higher offer can be weaker if the buyer’s current property is not listed, has no contract, or has several unresolved steps before closing. A slightly lower offer may be stronger when the buyer’s property is already through inspection and appraisal, financing is well documented, and the proposed closing dates leave room for delays.
Create the same one-page comparison for every offer. Record price, seller concessions, estimated net, financing type, lender evidence, earnest and option money, requested closing and possession dates, and every contingency. For a buyer who must sell first, add the address of that property, its listing and contract status, its scheduled closing date, and the events still outstanding. This turns a vague concern into a set of facts the seller can discuss with the agent.
What does the Texas addendum do?
Texas Real Estate Commission Form 10-6 addresses a buyer whose purchase depends on receiving proceeds from the sale of another property. The form identifies that property and states a deadline for the contingency. If the contingency is not satisfied or waived by the stated date, the contract terminates automatically and the buyer’s earnest money is refunded. The deadline should be no later than the closing date in the sales contract.
The form also contains a process that can matter when the seller receives another written offer. After the required notice, the form sets a period for the buyer to waive the contingency before the contract terminates. A waiver is made in writing and includes the additional earnest money stated in the form. These are contract mechanics, not a recommendation for a specific deal. The agent should use the current promulgated form, and legal-effect questions belong with a Texas attorney.
How far along is the buyer’s current sale?
The stage of the other sale is one of the clearest risk indicators. A home that has not been prepared or listed creates more uncertainty than one that is active with showings. An accepted contract reduces some uncertainty, but it does not remove inspection, repair, appraisal, financing, title, or closing risk. A transaction that is clear to close is different again.
Ask for facts that can be documented through the appropriate agents and lender. When was the property listed? Has the buyer accepted a contract? Has the option or inspection period ended? Is the appraisal complete? Has the buyer for that property received loan approval? Is title clear? What is the scheduled closing date? Avoid treating labels such as under contract as proof that every remaining condition is routine. List the open steps and the dates tied to them.
Why does closing-day cushion matter?
A chained transaction can fail even when every party intends to perform. Funding can be delayed. A final document can need correction. A title issue can require more time. A lender can request another item before releasing funds. When the buyer’s sale and the New Braunfels purchase are scheduled for the same day, one delay can move through the entire chain.
Compare the scheduled sale date with the proposed purchase closing. More cushion generally gives the seller more room than a same-day sequence, but the right schedule also depends on possession and moving plans. Ask whether either party needs a leaseback, temporary housing, or coordinated movers. Put the dates on a calendar, including the contingency deadline, option period, financing deadline, appraisal timing, title work, and closing. A price premium may not compensate for a schedule that conflicts with the seller’s next purchase or creates expensive temporary arrangements.
Can the seller keep marketing the property?
The written contract controls the parties’ rights, so sellers should not rely on a casual description of a kick-out clause. TREC Form 10-6 provides a written-notice and waiver process when the seller accepts another offer, and the exact number of days and additional earnest money are filled into the form. The seller should understand the process before accepting, not after a backup buyer appears.
A backup contract can preserve another buyer’s position while the first contract remains in effect. TREC’s current Addendum for Back-Up Contract is designed for a second contract that depends on termination of the first. Discuss how showings, marketing status, notice, waiver, and backup handling would work in practice. The goal is not to pressure the first buyer. It is to understand whether the seller can respond if a better-supported path to closing develops.
What proof should a seller request?
Request enough documentation to evaluate the chain without collecting unnecessary private information. Useful items can include the buyer’s lender letter for the New Braunfels purchase, confirmation of funds needed after the other sale, the other property’s listing status, the executed contract status reported through the agents, and a timeline of remaining milestones. The seller’s agent can coordinate what is appropriate to request and how it should be handled.
Look for consistency. The buyer’s proposed closing should match the expected receipt of sale proceeds. The lender should know the purchase is contingent on another closing. The earnest money, option terms, and contingency deadline should reflect the risk being accepted. If the buyer says the current home is nearly complete but major events remain unresolved, score the offer based on those unresolved events. Documentation cannot remove closing risk, but it gives the seller a better basis for comparing offers.
How do you compare the risk-adjusted net?
Calculate estimated net proceeds after price, concessions, requested repairs known at offer time, and any costs created by the timeline. Then weigh the probability and timing of closing. A $5,000 higher price may not be the better result if the seller carries the property for another month, delays a purchase, or loses a well-qualified alternative while waiting for an early-stage sale contingency.
Use three columns: economic terms, certainty, and fit. Economic terms include price, concessions, and estimated net. Certainty includes the other sale’s stage, lender evidence, deadlines, earnest money, and remaining conditions. Fit includes closing, possession, and the seller’s tolerance for delay. Do not assign a fake mathematical probability. Mark each item strong, acceptable, or unresolved, and write down what would move an unresolved item into the acceptable column.
What should happen before the seller signs?
Confirm the exact status and timeline of the buyer’s property, then review the current TREC forms with the agent. Ask what happens if the contingency is not satisfied, what written notice is required after another offer, how a waiver works, and what additional earnest money is stated. If the seller needs interpretation or custom language, consult a Texas attorney before signing.
Compare the contingent offer against the seller’s real alternatives, including the cost of staying on market. A contingent offer with strong documentation and a short, realistic chain can be better than waiting for an unknown buyer. An offer based on an unlisted property and optimistic same-day timing carries more uncertainty. The decision should match the seller’s priorities and use current written terms, not a rule that every contingent offer is good or bad.
Which questions make the comparison clearer?
Ask what event would most likely delay the buyer’s sale and how much schedule room exists if it happens. Ask whether the buyer has enough verified funds to proceed if sale proceeds change. Ask when the seller can review backup interest and what the current contract says about notice. Ask how the proposed dates affect the seller’s own purchase, move, utilities, insurance, and carrying costs.
Put unanswered questions in the comparison instead of treating them as favorable assumptions. Give the buyer a reasonable opportunity to provide documentation through the agents. Then compare the updated offer with every other available path, using the same categories and the same date. A consistent review makes the trade-offs easier to explain and keeps a single attractive term from hiding the rest of the transaction.
Where can sellers continue their planning?
Review the sell-before-buying guide for related timing decisions, compare concessions in the seller concessions guide, and use the contact page when the offer terms need a property-specific conversation.
