Contingent Sales in an Active Market

I've recently been asked by both buyers and sellers about contingent sales.
In our market, most sellers won't even consider a contingent-sale offer. If the buyer's house doesn't sell, the deal if off and the seller has to find another buyer. Common seller concerns are: How salable is your property? Will you price it right for the market? Will you negotiate reasonably to sell your home as quickly as possible?
In a market like ours, where multiple offers are the norm, buyers need to arrange interim financing, either through a line of credit through a "bridge" or "swing" loan on their present house.
In an active "seller's market," usually the only sellers who will entertain contingent-sale offers are those whose properties have been on the market for some time, and are overpriced or have other problems.
In a more balanced market, when homes take longer to sell, a homeowner may consider an offer contingent on the sale of another property, especially if the buyer's agent has done his or her homework. A comparative market analysis will show the seller that your home is listed at a marketable price, and provide information about how long it is taking to sell properties like yours. A seller might be more receptive to your contingent sale offer if he thinks your home is more salable than his.

A release clause should be in the contract to alleviate the seller's concern about withdrawing his property from the market for a transaction that may never close. A release clause allows the sellers to continue to offer their home for sale, and if another offer comes in, the buyers have a set time frame to remove the contingency...usually 72 hours. If they are unable or unwilling to do so, the home goes to the other buyers.