You found the right home in Phoenix, but you still need to sell yours. Or you’re listing in Maricopa County and a buyer’s offer depends on another sale. That tension is common here, and you can still win with the right plan. In this guide, you’ll learn how contingent offers work in Arizona, what timelines to expect, and how to craft terms that move a deal to the finish line. Let’s dive in.
What a contingent offer means in Phoenix
A contingent offer is a purchase offer with conditions that must be met before closing. Common contingencies in Phoenix include the sale of the buyer’s current home, financing, inspection, appraisal, title, and HOA review. These protections are normal and built into the Arizona Association of REALTORS standard forms used across Maricopa County.
Seller appetite for contingencies varies by neighborhood, price point, and market conditions. In some West Valley spots like Peoria or Goodyear, a move-in-ready home can still draw strong competition. In other areas or price tiers, sellers may be more open to reasonable contingency timelines.
Arizona contract basics you should know
Most resale deals here use the Arizona Association of REALTORS Residential Resale Real Estate Purchase Contract and related addenda. These forms define contingency periods, notice requirements, and how a buyer can cancel if a condition is not met. Arizona allows parties to negotiate specific timelines and terms, so clarity in writing is essential.
Phoenix-area MLS practice often shows when a listing is contingent or active contingent and whether the seller is open to backup offers. Many sellers continue to market the property during a contingency unless restricted by the contract. Expect standard notice mechanics and strict deadlines that both sides need to track closely.
Common contingencies and timelines
Home-sale contingency
A home-sale contingency makes the purchase dependent on you selling, and often closing on, your current home. Sellers in Phoenix typically prefer shorter windows, often 30 to 45 days, though buyers sometimes request 45 to 60 days depending on their market. Many sellers require proof your home is listed and that you are actively showing it, or evidence of a signed contract if requested.
A kick-out clause is common. It lets the seller keep marketing and, if they receive another acceptable offer, give you 24 to 72 hours to remove your contingency or allow them to proceed with the new buyer. Clear notice terms and response times are essential to avoid disputes.
Financing contingency
A financing contingency protects you if you cannot obtain the specified loan after applying in good faith. In Phoenix, lenders often need 30 to 45 days to complete underwriting and issue a commitment, though some conventional loans can close faster. A strong pre-approval or conditional approval is more persuasive to sellers than a basic pre-qualification.
If the appraisal comes in low, buyers and sellers often negotiate an appraisal gap solution. That could be a price reduction, a larger cash down payment, or a seller credit. Appraisal timing varies, but expect roughly 7 to 21 days once ordered.
Inspection rights and repair talks
The inspection period in Arizona is typically 7 to 10 days, though you can negotiate longer if specialized inspections are needed. Even in an “as-is” listing, you usually keep the right to inspect and cancel within the inspection window as the contract allows. You can submit a repair request or addendum, and the seller can accept, counter, or decline.
Short, focused inspection periods signal confidence to the seller. Line up inspectors early and be ready to act quickly if an issue arises. Keep in mind that missing an inspection deadline can limit your options.
Appraisal, title, and HOA review
An appraisal contingency protects you if value comes in below contract price, often allowing renegotiation or cancellation. The title review period gives you time to object to liens or errors that could block a clean transfer. If the home is in an HOA, you typically have a short window to review documents and budgets and cancel if the terms or financials are not acceptable to you.
Because these deadlines can overlap, both sides need to coordinate carefully. Good communication keeps surprises off the closing calendar and supports an on-time clear to close.
Kick-out clauses and backup offers
Kick-out clauses are common when a seller accepts a home-sale contingency. If a new, acceptable offer arrives, the seller can notify you and require removal of your contingency within a short period, often 24 to 72 hours. If you cannot remove it, the seller can proceed with the other buyer.
Backup offers are also a standard tool in Phoenix. They give the seller a ready alternative if the primary deal fails. If you are a backup buyer, discuss timelines with your agent so you can act quickly if the primary contract terminates.
How to strengthen your contingent offer
Sellers value certainty. You can keep your protections while making your offer more competitive with a few smart moves:
- Provide strong proof upfront. Include a full lender pre-approval or conditional approval, proof of funds for down payment and closing, and your home’s MLS listing or signed contract if you have one.
- Shorten key windows. Offer a 7-day inspection period and a tighter timeline to remove your home-sale contingency after you go under contract on your property.
- Increase earnest money. A larger deposit shows commitment. Some buyers make a portion non-refundable after removing contingencies, which carries risk and should be discussed with your agent.
- Offer an appraisal-gap plan. Commit to cover a set amount of any appraisal shortfall in cash, if possible.
- Explore bridge options. A bridge loan, HELOC, or temporary funds from family may let you write a non-contingent offer or shrink your contingency windows. Review costs and risks with your lender.
- Be flexible on timing. If the seller needs a certain close date or a short rent-back, that may outweigh a small difference in price.
If you’re selling and considering a contingent buyer
You can protect your position and still capture a strong price with the right terms:
- Require documentation. Ask for the buyer’s pre-approval, proof their home is listed or under contract, and proof of funds for their down payment.
- Use a kick-out clause. Keep marketing the property and include a clear response period if another acceptable offer comes in.
- Keep a backup offer. A qualified backup buyer reduces downtime if the primary deal fails.
- Trade terms for certainty. A higher price, larger earnest money, or shorter contingency windows can balance the added risk.
- Weigh carrying costs. Compare the value of the contingent offer against your potential holding costs and time-to-market if you wait for a different buyer.
- Use clear contract language. Spell out deadlines, notice mechanics, and remedies to avoid disputes.
Smart timelines that work locally
While every deal is negotiated, these ranges reflect typical Phoenix practice:
- Inspection period: 7 to 10 days
- Appraisal completion: about 7 to 21 days after ordered
- Financing commitment: 30 to 45 days for most loans
- Home-sale contingency window: 30 to 60 days, with many sellers preferring 45 days or less
- Kick-out response time: 24 to 72 hours after seller notice
- Closing: often 30 days for clean conventional deals, 45 to 60 days if a sale must close first
Buyer checklist before making a contingent offer
- Get a strong pre-approval or conditional approval from your lender.
- List your current home and gather activity data, or secure a signed contract if possible.
- Right-size your timelines and discuss bridge options with your lender.
- Decide on earnest money and whether any portion becomes non-refundable after removing contingencies.
- Review contract language and risks with your agent.
Seller checklist when reviewing a contingent offer
- Request the buyer’s pre-approval and proof their home is listed or under contract.
- Decide whether to keep showing the home and accept backup offers.
- Add a kick-out clause or set a short contingency removal period.
- Evaluate earnest money and whether to ask for more.
- Compare the price premium or terms against your carrying costs and time on market.
- Confirm clear deadlines and notice procedures in the contract.
Real-world examples
- Buyer A has their home under contract and offers full price, proof of their sale, a 7-day inspection period, and a plan to remove the home-sale contingency within 48 hours of seller notice. They also increase earnest money. A seller may accept because the buyer reduces uncertainty.
- Buyer B wants no home-sale contingency and uses a bridge loan to close in 30 days. This is often more attractive to sellers, but the buyer takes on financing costs and risk.
The bottom line for Phoenix buyers and sellers
Contingent offers work in Phoenix when both sides have clear timelines, strong documentation, and open communication. Buyers win more often when they shorten windows, boost certainty, and show funds. Sellers protect themselves with kick-out clauses, backup offers, and tight deadlines.
If you want a plan tailored to your price point and neighborhood, our team can help you structure timelines, evaluate risk, and negotiate terms that fit your goals. Reach out to the Desert Luxe Team for a conversation about your next move.
FAQs
What is a contingent offer in Phoenix real estate?
- It is a purchase offer with conditions, such as selling your current home or securing financing, that must be satisfied or waived before closing under Arizona’s standard contract forms.
How does a kick-out clause work in Arizona home sales?
- It lets a seller who accepted a contingent offer continue marketing and, if another acceptable offer arrives, require the buyer to remove the contingency within a set time, often 24 to 72 hours.
How long does financing usually take for Phoenix purchases?
- Many lenders need 30 to 45 days to complete underwriting and issue a loan commitment, though some conventional loans can close faster depending on specifics.
Can I cancel after a low appraisal in Arizona?
- If your contract includes an appraisal contingency, you can usually renegotiate or cancel based on the terms; without one, you may need to cover a shortfall to close.
Will Phoenix sellers accept a home-sale contingency?
- Sometimes. It depends on demand, price tier, timelines, and documentation. Shorter windows and strong proof of funds or pre-approval improve your chances.
