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The True Cost of Contingent Buyers for Home Builders

December 4, 20245 min read

The Hidden Costs of Contingent Buyers

Every builder knows the frustration: a qualified buyer loves your home, they're pre-approved, ready to sign — but they need to sell their existing home first.

What happens next is a waiting game that costs you more than you might realize.

The Direct Costs

Carrying costs: Every month a home sits unsold costs money. At $50,000+ per month for a typical new build, a 60-day contingency window can cost $100,000 before the deal even closes.

Opportunity cost: While you're waiting on a contingent buyer, other qualified buyers may come and go. That spec home could have sold three times over.

Staff time: Your sales team spends hours managing contingent buyers, following up on their home sale, and hoping the deal doesn't fall through.

The Fall-Through Factor

Industry data suggests that 30% of contingent deals never close. That means for every three contingent buyers you accept, one will likely fall through — sending you back to square one.

A Better Approach

What if you could convert contingent buyers into cash-ready buyers before they ever write an offer?

That's exactly what programs like HomeLight Buy Before You Sell do. The buyer's equity gets unlocked, they make a clean offer, and you close on your timeline.

No contingency. No waiting. No risk.

The Bottom Line

Contingent buyers aren't bad buyers — they're often great buyers stuck in a bad situation. The solution isn't to turn them away. It's to give them a path to become cash-ready.

That's what ClearClose does for our builder partners.

Ready to Eliminate Contingencies?

Let's discuss how ClearClose can help you close more deals.