What is a contingent sale offer? It's an offer made subject to the sale of the buyer's property. If their property doesn't sell, the buyers aren't obligated to complete the purchase.

Repeat buyers, unlike first-time buyers, often have to sell their existing home so they can afford to buy another home. Some repeat buyers sell their home first and then buy. But, others find it difficult to let go of their current home until they know for sure where they'll live next. They'd prefer to buy first, then sell.

But, as a seller, is it a good idea to tie your home up with a contract that's dependent on another property selling? What if the buyers set an unreasonable price for their home and it doesn't sell? This is a reasonable concern. However, there are times when it might be worthwhile to work with a contingent sale offer, as long as it's structured properly.

FIRST-TIME TIP: Find out as much as you can about the buyers' property before deciding whether or not to accept the offer. If it's already on the market, have your agent ask the buyer's listing agent how much activity they're getting from interested buyers. Ask other agents who work in the area of the buyer's property how well priced they think the listing is.

If the property is local, drive by it yourself. Is it well-maintained? Does it have any obvious defects like a fast-food restaurant across the street? Are there a lot of for sale signs in the neighborhood that might indicate a glut of homes on the market?

The buyers' home may not yet be on the market when they make their offer. If so, and you want to work with the offer, make sure your purchase contract includes a provision for the buyers to multiple list their home within several days of contract acceptance. You also may want your agent to have the right to approve of the list price of the buyer's home.

Make sure that your contract with a contingent sale buyer specifies two time frames: one for the buyer's property to sell (say 30 to 60 days) and another for closing the sale. Often contingent sale offers don't specify a time period for the buyers to find a buyer for their home. Without this provision, you could find out the day before closing is supposed to occur that the buyers still haven't sold their home.

A release clause to protect the sellers is often made a part of a contingent sale contract. A release clause allows the sellers to continue to market their home until the buyers sell their home. If the sellers receive another offer they like, they can accept it in back-up position.

The contingent sale buyers are then notified that they have a certain time period (often 72 hours, but it's negotiable) to remove their continent sale contingency. If they are unable to do so, the home goes to the back-up buyers and the first buyers' deposit is returned to them.

Even with a release clause, sellers who accept a contingent sale offer may experience a reduction in showing activity. This is particularly the case if there are plenty of similar properties for sale in the area. Agents prefer to show homes that are 100 percent available.

A non-contingent offer is preferable to one that's dependent on the sale of another property. But, if your home isn't selling, a contingent sale offer is worth considering. Particularly if the buyers' home is more salable than yours.