What Is a “First Right Contingency Offer” in Real Estate?

In today’s real estate market, many Buyers face a common challenge: they need to sell their current home in order to buy their next one. While this is a very normal situation, it can create complications when making an offer on a new property—especially in competitive markets.

One solution that sometimes comes into play is a First Right Contingency Offer. This type of offer can be useful, but it also comes with moving parts, timelines, and risks that Buyers and Sellers need to fully understand before proceeding.

Let’s break down what a first right contingency offer is, how it works, and why having the right real estate agent matters so much in this scenario.

What Is a First Right Contingency Offer?

A First Right Contingency Offer (sometimes referred to as a “first right of refusal” style contingency) is an offer made by a Buyer that is contingent upon the sale of their current home.

In simple terms:

The Buyer wants to purchase a new home
The Buyer must sell their existing home first
The Seller accepts the offer with conditions

This means the Seller agrees to give the Buyer the first right to move forward with the purchase once the Buyer’s current home goes under contract.

Is It an Accepted Offer? Yes… But Also No

This is where confusion often arises.

A first right contingency offer is accepted by the Seller, but it is not fully binding in the same way as a traditional purchase agreement—at least not yet.

Here’s why:

The Buyer has not yet removed the contingency
The Buyer’s home is not under contract
The Buyer has not officially committed to purchasing the new home

Until the Buyer’s existing home goes under contract with another Buyer, the transaction remains in a holding pattern.

Think of it as a conditional acceptance rather than a green light to move forward.

When Do Contract Timelines Actually Start?

One of the most important details Buyers and Sellers must understand is when timelines begin.

With a first right contingency offer:

👉 Contract timelines do NOT start at acceptance

Instead, timelines begin only after the Buyer removes the first right contingency, which happens when:

The Buyer’s current home is listed
The Buyer receives an offer
That offer is accepted and under contract
The Buyer formally notifies the Seller that they are proceeding with the purchase

Only at that point do key deadlines begin, such as:

Inspection periods
Financing timelines
Appraisal deadlines
Closing date countdown

Until then, the contract is essentially paused.

What Rights Does the Seller Have During This Time?

While the Buyer holds the first right, the Seller is not necessarily locked in.

In many cases:

The Seller may continue to show the property
The Seller may accept backup offers
The Seller may require the Buyer to act within a specified timeframe once another offer is received

If another qualified Buyer comes along, the Seller may issue a notice requiring the first right Buyer to either:

Remove the contingency and move forward, or
Step aside so the Seller can proceed with the new offer

This protects the Seller from having their home tied up indefinitely.

Why First Right Contingency Offers Can Be Tricky

There are a lot of moving components involved in a successful first right contingency transaction. You’re essentially coordinating two separate real estate transactions at the same time:

The sale of the Buyer’s current home
The purchase of the new home

Each transaction has its own risks, timelines, negotiations, inspections, and financing components. If something goes wrong on one side, it can directly impact the other.

Common challenges include:

Delays in getting the current home under contract
Financing complications
Inspection issues on either property
Appraisal concerns
Market shifts during the contingency period

Without proper planning and strategy, things can unravel quickly.

Why Sellers Are Often Cautious About First Right Offers

From a Seller’s perspective, first right contingency offers can feel risky.

Sellers may worry about:

Lost market momentum
Missed opportunities with other Buyers
Uncertainty around timelines
Whether the Buyer’s home will sell at all

Because of this, Sellers often prefer clean offers without contingencies. However, in the right situation—and with strong guidance—a first right contingency offer can still be a win-win.

When a First Right Contingency Can Make Sense

A first right contingency offer may work well when:

The Buyer’s current home is highly marketable
The Buyer is willing to price their home competitively
The Seller is not under immediate pressure to sell
Clear timelines and expectations are outlined in the contract

The key is proper structuring and communication, which is where a skilled real estate agent becomes essential.

The Importance of Professional Guidance

Trying to navigate a first right contingency offer without professional guidance can lead to misunderstandings, missed deadlines, and unnecessary stress.

At JF Property Group, our agents understand how to:

Structure first right offers strategically
Set clear expectations for all parties
Coordinate timelines between the sale and purchase
Protect our clients’ interests at every step
Keep deals moving toward a successful closing

Because there are so many moving parts, having an experienced agent advocating for you can make the difference between a smooth transition and a deal falling apart.

Alternatives to a First Right Contingency Offer

In some cases, a first right contingency offer may not be the best option. Depending on your financial situation and goals, other solutions may be available, such as:

Bridge loans
Financing to purchase a second property outright
Specialized loan programs structured in the Buyer’s favor

Each situation is unique, and the best approach depends on your overall financial picture, risk tolerance, and timing goals. These alternatives are worth discussing with a knowledgeable real estate professional.

Final Thoughts

A First Right Contingency Offer can be a powerful tool for Buyers who need to sell their current home before purchasing their next one—but it’s not as simple as a standard offer.

Understanding that:

Acceptance is conditional
Timelines don’t begin immediately
Two transactions must align perfectly

…is critical for a successful outcome.

If you’re considering making a first right contingency offer—or if you’re a Seller evaluating one—it’s best to work with an experienced agent who knows how to navigate the complexities.

The agents at JF Property Group are here to help you every step of the way, ensuring both your home sale and purchase are handled strategically, efficiently, and with your best interests in mind.

📞 Contact JF Property Group today to discuss your options and create a plan that works for you.