How to Buy a House in Phoenix Contingent on Selling Yours
The Market That Makes This Possible Right Now
Contingent offers were essentially dead in Phoenix from 2020 through mid-2022. During that stretch, sellers were fielding multiple offers within 48 hours, often above list price, often waiving inspection contingencies. Asking a seller to wait while you sold your home was a fast path to the back of the line.
The market that exists in early 2026 is a different environment. Per ARMLS STAT (February 2026), Phoenix has 24,358 active listings, an average of 94 days on market, and 59.6% of properties closing below list price. The Cromford Supply Index stands at 93.7 — above the 90 threshold that signals favorable conditions for buyers, up 11% from the same point last year. Sellers in the $400,000–$700,000 range across West and Northwest Valley submarkets are offering concessions, accepting price reductions, and competing for buyers who were not even in the room two years ago.
That last phrase from Ready is the critical distinction: they like to see the house under contract. There is a meaningful difference between walking in with your home already in escrow versus asking a seller to wait while you list yours. The addendum covers both scenarios — but they are not equal in a seller’s eyes.
The Psychology Behind the Hesitation
Most people searching this topic are not confused about what a contingency is. They are trying to figure out whether it is even worth attempting, whether sellers will laugh at it, and how to avoid the nightmare scenario of being homeless between transactions.
Here is the honest picture: the fear is rational but the probability of failure is lower than people assume — especially if you approach the transaction with sequencing discipline. The buyers who fail in contingent deals almost always trace the breakdown to the same cause: they priced their current home at what they needed rather than what the market would actually pay, burned through their contingency window, and lost the purchase. The mechanics of the addendum are not complicated. The pricing discipline is where deals actually die.
There is also a secondary fear — the gap. The window between closing your current home and closing your new one where you technically own nothing. This is solvable with timing and alternatives outlined below. It is not a reason to avoid the contingent path.
How the AAR Buyer Contingency Addendum Works
The Arizona Association of REALTORS provides the Buyer Contingency Addendum (revised July 2023) to document home sale contingency arrangements. It covers two distinct scenarios, and which one applies to your situation matters significantly in terms of how sellers perceive your offer.
Scenario A: Your Home Is Already Under Contract (Closing Contingency)
This is the stronger position. Your current home is listed, accepted an offer, and is in escrow. You are not asking the seller to wait while you find a buyer — you already have one. The contingency says: if my current sale closes by [deadline], we close on yours. If my current sale fails to close, this contract cancels and my earnest money is returned.
Sellers are considerably more receptive to Scenario A because the biggest variable — finding a buyer — is already resolved. The remaining risk is that the existing escrow falls apart, which happens, but it is a lower-probability outcome than starting from scratch.
Scenario B: Your Home Is Not Yet Under Contract (Sale Contingency)
You are asking the seller to take their home off the open market (partially — with the kick-out clause) while you find a buyer for yours. This is a larger ask. Sellers who accept Scenario B in Phoenix’s current market typically do so because their property has been sitting, they want the deal, and they have the kick-out clause as protection. You can make Scenario B work, but the window you negotiate needs to be realistic relative to your home’s actual marketability.
The addendum specifies: the contingency deadline, what constitutes satisfaction (either accepting an offer or closing, depending on scenario), and what the earnest money disposition is if the contingency is not met. Both parties sign. If the contingency deadline passes without satisfaction, the contract is deemed cancelled and earnest money is released to the buyer.
The Kick-Out Clause: What It Means and How to Handle It
Most sellers who accept a contingent offer in Phoenix will require a kick-out clause as a condition of acceptance. Understanding this clause fully prevents the most common panic situation buyers face.
A kick-out clause gives the seller the right to continue marketing the property while your contingency is in place. If the seller receives another qualified offer, they notify you and give you a set response window — typically 24 to 72 hours in Arizona, though the specific timeframe is negotiated and written into the contract. Within that window, you have two options:
Option 1 — Remove the contingency and proceed. You waive the home sale contingency and commit to buying the property regardless of whether your current home sells. This requires you to have a financing plan in place for both properties simultaneously (bridge loan, savings, or another mechanism) if your current home has not yet closed. Choosing this option without a clear financing plan is how buyers create serious financial problems for themselves.
Option 2 — Decline to remove and cancel. You cannot or choose not to remove the contingency within the notice window. The contract cancels, your earnest money is returned per the addendum terms, and the seller proceeds with the new offer. You lose the house but retain your funds.
The kick-out clause is not a trick. It is the seller’s reasonable protection against having their property stuck in limbo indefinitely while you search for a buyer. Accepting a kick-out clause — rather than fighting it — is typically the right move when you need a seller to work with you on a contingency. Refusing the kick-out clause signals to the seller that you are asking for more certainty than the situation warrants, and most will simply decline your offer.
How to Make Your Contingent Offer Stronger in Phoenix
Five tactics that improve acceptance odds in the current Phoenix market:
Get your home listed and ideally under contract before you make an offer. A closing contingency (Scenario A) is significantly more compelling than a sale contingency (Scenario B). If you can get an accepted offer on your current home first, you walk into the purchase negotiation from a position of strength rather than uncertainty. Most Phoenix sellers in 2026 will accept a closing contingency without much resistance if your existing escrow looks solid.
Price your current home to sell within your contingency window — not at aspiration. This is the single most important instruction in this entire post. The contingency deadline you negotiate with the seller becomes the clock. If you price your home at $50,000 above what comparable sales support, you will chase the market down, burn through your window, and lose the purchase. Pull the comparable sales with your agent. Price where the market clears. Speed is the asset.
Offer a meaningful earnest money deposit. The standard earnest money in Phoenix runs roughly 1% of purchase price. On a $500,000 home that is $5,000. On a contingent offer, consider going to 1.5% to 2% if you can. It signals that you are committed and that the seller is not taking all the risk by pulling back marketing to other buyers.
Keep the contingency window tight and realistic. A 90-day contingency window on a sale contingency looks like you do not have confidence in your own home’s marketability. In the current Phoenix market, a well-priced home in Peoria, Goodyear, Surprise, or Buckeye should move to contract within 30–45 days. A 45-day sale contingency window is aggressive but credible if your home is priced right. A closing contingency window (Scenario A) typically needs 20–30 days to account for escrow close timing.
Accept the kick-out clause. Do not negotiate against it unless you have a specific reason to resist the timeline. A 72-hour kick-out with your financing plan pre-arranged is manageable. A seller who sees you push back hard on the kick-out may simply decide you are not worth the risk and move on.
Alternatives If the Contingent Path Does Not Work
The contingent offer is not the only way to buy while you still own. If sellers in your target submarket are not accepting contingencies — or if a specific property is in a more competitive situation where contingencies are off the table — four alternatives are worth evaluating:
| Alternative | How it works | What it costs / requires |
|---|---|---|
| Bridge loan | Short-term loan secured against your current home’s equity. Funds the down payment on the new home so you can close without selling first. | Typically 6–12 month terms, higher interest rates (often 1–2% above 30-yr fixed). Requires sufficient equity and qualifying income to carry both mortgages temporarily. |
| HELOC on current home | Home equity line of credit tapped before listing your current home to fund the down payment on the new purchase. | Requires existing equity, no existing second lien, and a lender willing to approve while your home is listed. Some lenders freeze HELOCs once a home is listed for sale — confirm before you rely on this path. |
| Sell first, negotiate leaseback | Accept an offer on your current home and negotiate a post-closing occupancy agreement (seller leaseback) with the buyer, giving you 30–60 days to close on your next home while still living in your current one. | Leaseback agreements have market rate implications for the buyer’s lender (some loan types restrict leaseback duration). Requires a buyer willing to accept delayed occupancy. Common in Phoenix — worth requesting. |
| Buy before you sell programs | Third-party programs (Knock, Orchard, similar) provide a cash offer on your next home funded by the equity in your current one. You sell your current home on the open market and the proceeds settle the program’s advance. | Service fees typically run 1–3% of purchase price on top of standard transaction costs. Availability and terms vary. Run the full cost comparison against the contingency path before committing. |
None of these alternatives is categorically superior to the contingent offer. Each has a different cost structure and a different risk profile. The right tool depends on your equity position, your income, the specific submarket you are buying into, and how quickly your current home is likely to sell.
The Pivot: Where This Strategy Actually Fails
The contingent purchase fails in one of three ways. Know them before you start:
Your current home is overpriced and does not sell within the contingency window. The contract cancels, you lose the house. This is the most common failure mode and it is entirely within your control. Price to the market, not to your mortgage payoff or your renovation investment. The market does not care what you paid.
You receive a kick-out notice and have no financing plan to remove the contingency. You cannot proceed without selling first, the new offer is real, and you cancel out. This is avoidable with pre-planning. Talk to your lender about bridge loan eligibility before you make any contingent offer. Know your options in advance.
Your current home’s escrow falls apart after you are already in contract on the new home. The buyer’s financing collapses, the inspection produces a deal-breaker, or the appraisal comes in low and negotiations fail. Your escrow cancels and so does your purchase contract per the addendum terms. Mitigate this by pricing your current home correctly, being responsive on BINSR requests, and knowing your cancellation rights at each stage of your existing escrow.
The sequencing checklist before you submit a contingent offer
Before making any contingent offer in Phoenix, confirm all five of these:
1. Your current home is listed (or you have a clear listing date within the next 7 days).
2. Your list price is supported by comparable sales within the last 90 days — not aspirational, not rounded up.
3. You have spoken with a lender about what happens if you receive a kick-out notice. Bridge loan eligibility confirmed or HELOC availability confirmed, even if you hope not to need it.
4. You know the realistic DOM for your current home’s price range and submarket. Your contingency window should be that number plus a 15-day buffer for escrow, not an optimistic guess.
5. Your earnest money deposit is ready and you understand it is at risk if you voluntarily cancel outside the contingency terms.
FAQ: Buying Contingent on Selling in Phoenix
A clause in the purchase contract that makes your obligation to buy the new home dependent on the successful sale and/or closing of your current home by a specified date. In Arizona, this is documented using the AAR Buyer Contingency Addendum. The contingency deadline and kick-out notice period are negotiated as part of the addendum.
The AAR Buyer Contingency Addendum (revised July 2023) is the Arizona Association of REALTORS standardized form used when a buyer’s purchase is contingent on selling their current property. It covers two scenarios: your property is already under contract (closing contingency), or you still need to find a buyer (sale contingency). The addendum specifies the deadline, the earnest money disposition if the contingency is not met, and the conditions under which the contract cancels.
A kick-out clause allows a seller to continue marketing the property while your contingency is in place. If the seller receives another qualified offer, they notify you and give you a set window — typically 24–72 hours — to either remove your home sale contingency and proceed without it, or cancel the contract. If you remove the contingency, you are committing to buy regardless of whether your current home sells. If you cannot remove it, the seller proceeds with the new offer and your earnest money is returned.
Yes — more commonly than at any point since the pre-2020 market. Sindy Ready, former president of the Arizona Realtors Association, stated in January 2026 that contingent offers are “pretty common” and that “sellers like to see the house under contract.” With 24,358 active listings and 94 average DOM, sellers in most Phoenix submarkets are motivated to work with contingent buyers rather than wait for a cleaner offer that may not come.
If your current home does not close by the deadline specified in the AAR Buyer Contingency Addendum, the purchase contract cancels and your earnest money is returned to you. The seller’s property goes back on the market. This is why pricing your current home correctly from day one is the single most important variable in a contingent transaction.
Both are covered in the AAR Buyer Contingency Addendum. A closing contingency (Scenario A) applies when your current home is already under contract — you just need the existing sale to close. A sale contingency (Scenario B) applies when your home is not yet under contract — you still need to find a buyer first. Closing contingencies are significantly more seller-friendly and easier to get accepted.
Four main alternatives: (1) Bridge loan — short-term financing secured against your current home’s equity; (2) HELOC — tap existing equity before listing, though some lenders freeze HELOCs once a home is listed; (3) Sell first and negotiate a seller leaseback with the buyer, giving you time to find your next home; (4) Buy-before-you-sell programs that advance the down payment against your current home’s equity, at a service fee of roughly 1–3% of purchase price.
Five tactics: (1) Get your current home under contract before making an offer — a closing contingency is far stronger; (2) Price your current home to sell within the contingency window, not at aspirational pricing; (3) Offer 1.5–2% earnest money to signal commitment; (4) Keep the contingency window realistic but tight — 45–60 days for a sale contingency, 20–30 days for a closing contingency; (5) Accept the kick-out clause rather than refusing it.
📅 Schedule a Buyer or Seller Consultation
A contingent transaction requires two deals to close — your sale and your purchase — with sequencing, pricing, and timing that have to work together. Ron and Jill work both sides of this equation: pricing your current home to clear the contingency window and positioning your purchase offer to get accepted in the first place. If you are trying to work out whether the contingent path is viable for your specific situation in Peoria, Goodyear, Surprise, Buckeye, or the broader West Valley, the conversation starts with a consultation, not a guess.
