Rethinking Contingency Management
The best builders don't just manage contingencies — they eliminate them entirely. Here are five strategies the top performers are using.
1. Partner with Equity Unlock Providers
Companies like HomeLight offer Buy Before You Sell programs that convert contingent buyers into cash-ready buyers. Smart builders have these partnerships in place before buyers even walk in.
2. Train Sales Teams to Identify Candidates Early
The earlier you identify a contingent buyer, the more options you have. Train your sales team to ask about existing home situations upfront — not as a disqualifier, but as an opportunity.
3. Build a Referral Network
Work with services like ClearClose that specialize in converting contingent buyers. Having a trusted partner means you never have to turn away a qualified buyer.
4. Set Clear Timelines and Expectations
If you do accept contingent offers, set clear deadlines and milestones. Require proof of listing, regular updates, and backup buyer clauses.
5. Price Contingency Risk Appropriately
Some builders offer incentives for non-contingent buyers or build contingency premiums into pricing. If you're taking on risk, make sure the deal reflects it.
The Bottom Line
Contingency risk is manageable — but eliminating it entirely is even better. With the right partners and processes, you can close more deals with less uncertainty.
Ready to eliminate contingency risk from your pipeline? Let's talk.