Contingent Offers Gain Acceptance in South Orange County, California as Market Balances

Written by:

Rudi Davis

Date:

14 Apr 2026

Share

Share via Facebook

Share via Linkedin

Share via X

Copy to clipboard

Simultaneous buy-sell transactions have become routine in South Orange County, California, marking a clear break from the multiple-offer environment that dominated the market three years ago. According to Leilani Serrao-Baker, founder and Realtor at Civitas Realty, buyers with contingencies are no longer at the bottom of the offer pile. Sellers are increasingly willing to accept more complex deals as the market becomes more balanced.

“A lot of buying and selling at the same time, and it’s more the norm than it has ever been in the last 14 years,” Serrao-Baker says. Just a few years ago, buyers who needed to sell their own home first had little chance of success and were often dismissed in favor of cash or non-contingent offers.

This change reflects a fundamental shift in market dynamics. Sellers can no longer count on immediate bidding wars and are now facing new trade-offs when evaluating offers. The increased acceptance of contingencies shows that sellers have become more flexible in order to close deals.

Contingencies No Longer Routinely Rejected

Three years ago, buyers who needed to sell their current home before purchasing a new one were routinely rejected in South Orange County. Sellers regularly received multiple offers, usually from cash buyers or those with pre-approved financing and no contingencies. In that climate, a contingent offer was rarely considered.

Serrao-Baker recently completed three simultaneous buy-sell transactions in a row, something that would have been nearly impossible during the peak seller’s market. These transactions remain complex. They require careful coordination of two closings and management of timing risks, but sellers are now more open to these challenges.

“We’re not seeing as many multiple offers, and we’re seeing more scenarios where people have to buy and sell at the same time. It’s more acceptable, and people are taking those contingencies more and more, but it is difficult.”

The willingness to accept contingencies signals market maturity, not weakness. Sellers recognize that holding out for a non-contingent offer could mean a longer wait. A well-qualified contingent buyer may be the most realistic option.

Supply Outpaces Demand Locally

Contingencies are being accepted in an environment where supply is starting to outpace demand. South Orange County, long known for low inventory, is now seeing supply build more quickly than demand, reducing the competitive pressure that once allowed sellers to dictate terms.

“Supply is getting bigger, and that is definitely an issue here,” Serrao-Baker says. “We have very low inventory, but supply is building faster than demand is keeping up right this second.”

This shift has created a more balanced market and given buyers more negotiating power. With fewer competing offers, sellers can no longer reject contingent bids and hold out for something better. Sellers must now weigh the certainty of a qualified buyer against the risk of a longer time on market.

This change is especially significant for local buyers who want to upsize or downsize within the area. These buyers typically need to sell their current home to fund their next purchase. In the past, this requirement often sidelined these buyers. Now they have a realistic path to completing a transaction.

Cash Buyers Outbid Young Families

While contingencies are more accepted, they are not successful in every case. Serrao-Baker notes she was recently outbid twice by all-cash buyers. Her clients, young families trying to stay in the area, could not compete. These buyers, often putting down 20%, are motivated to remain near family but face disadvantages when up against cash offers.

“My clients couldn’t compete, because they’re young families just trying to stay in the area because they were raised here, and they want to stay in the area to be around their family, but they’re usually 20% down buyers,” Serrao-Baker says.

Cash buyer dominance varies by price point. Serrao-Baker has closed condominium deals with multiple offers where no buyer paid cash, suggesting cash dominance is more pronounced in higher-priced segments. Even in mid-tier single-family home transactions, however, cash buyers can exert competitive pressure, putting contingent buyers at a disadvantage.

For young families, the path to homeownership in South Orange County often requires patience and flexibility with location or property type. Serrao-Baker advises these buyers to consider entry-level properties or homes further inland, with the expectation that appreciation will eventually allow them to move into their preferred neighborhoods. She cites recent clients who bought a townhome in a less desirable area, built equity as values rose, then used that equity to purchase a single-family home in their preferred neighborhood.

Managing Two Closings at Once

The normalization of simultaneous buy-sell transactions has increased the operational complexity for agents. Coordinating two closings requires precise timing, clear communication, and contingency planning in case one side is delayed or falls through.

Serrao-Baker’s experience handling three of these transactions in a row highlights the challenges. Agents must manage seller expectations, ensure buyers are fully qualified, and navigate the possibility that a problem on one side could jeopardize the entire deal. While these transactions are not easy, they have become necessary as more buyers and sellers find themselves in this position.

Agents also need to educate sellers about the realities of today’s market. Some sellers still remember bidding wars from three years ago and may be hesitant to accept a contingent offer, viewing it as a risk. Agents must explain that market dynamics have changed, contingencies are now common, and rejecting a qualified contingent buyer could result in the property sitting unsold.

What a Balanced Market Means

The acceptance of contingencies in South Orange County signals a more mature, balanced market. The extreme seller’s market three years ago was fueled by low interest rates, limited inventory, and strong demand. As those conditions have eased, the market has returned to a state where both buyers and sellers must make compromises.

For buyers, contingent offers open doors that were previously closed. Residents who want to upsize or downsize can now participate without selling first and risking displacement or bridge financing. This flexibility could encourage more transactions and help maintain market activity.

For sellers, accepting contingencies is a practical response to current conditions. While it adds some risk and complexity, it also increases the pool of potential buyers and reduces the chance of properties sitting on the market for extended periods.

The trend toward simultaneous buy-sell transactions is likely to continue as long as inventory levels build and multiple offers remain uncommon. If the market tightens again due to lower interest rates or a surge of new buyers, sellers may regain the leverage to refuse contingencies. For now, flexibility and cooperation are necessary for deals to close.

Both buyers and sellers must adjust their expectations and strategies as the market continues to evolve. Agents play a crucial role in guiding clients through these more complex transactions. The ability to navigate contingencies will remain a key skill for successful transactions in South Orange County, California.