10/22/2026
šØ YOUR REALTORĀ® IS TELLING YOU TO ACCEPT A CONTINGENT OFFER? HELL NO, NOT IN THIS HOUSING MARKET! šØ
On October 20, 2026, the National Association of REALTORSĀ® released housing numbers that should get the attention of every homeowner considering selling their property.
Pending home sales reportedly declined 7.3% in September and 11.3% compared with the previous year. Here in the Midwest, contract activity dropped 6.5% in just one month.
The national Pending Home Sales Index reportedly fell to 66.0, its lowest reading since tracking began in 2001.
Think about what those numbers mean.
Fewer buyers are successfully getting homes under contract, mortgage affordability remains a serious obstacle, and homeowners are competing for a smaller pool of qualified purchasers.
Yet some sellers are still being encouraged to accept offers that depend on ANOTHER homeowner successfully selling their property.
At America's Real Estate Experts, powered by One Beautiful HomeĀ®, we believe homeowners deserve to understand the financial risks BEFORE signing an agreement that could jeopardize their family's future.
Here's why.
When inflation becomes a problem, the Federal Reserve can use restrictive monetary policy to discourage borrowing, reduce spending, and slow economic activity.
Although the Fed doesn't directly establish mortgage rates, its policies influence the financial markets that determine borrowing costs.
Housing is especially vulnerable because most American families cannot purchase a home without mortgage financing.
Consider a family purchasing a $300,000 property with 10% down.
At a 7.40% mortgage rate, their monthly principal and interest payment would be approximately $1,869.
Increase that interest rate by just HALF A PERCENTAGE POINT, and their payment climbs to approximately $1,962.
That additional $93 might not sound significant to everyone, but for a family already approaching the lender's maximum debt-to-income ratio, it could mean losing mortgage approval altogether.
Research published by the Federal Reserve Bank of St. Louis in May 2026 examined more than 30 MILLION mortgage applications between 2018 and 2024.
Researchers found that rising borrowing costs during the Fed's 2022ā2023 tightening cycle could explain the increase in aggregate mortgage denial rates during that period.
Imagine working the same job, earning the same income, maintaining excellent credit, and having the same savings account.
Nothing about your personal finances changes, but higher borrowing costs can suddenly put the home you wanted beyond your lender's approval limits.
Now let's bring this home to Northwest Indiana.
Suppose you're selling your property for $350,000.
After months of preparing, cleaning, scheduling showings, and waiting for the right buyer, your REALTORĀ® presents an offer for $345,000.
Sounds pretty good, right?
Unfortunately, there's a condition attached.
The buyer must sell their existing $275,000 home before purchasing yours.
That means your transaction depends on another property successfully selling and closing.
Now suppose the person purchasing that $275,000 property is still working through mortgage financing.
If borrowing costs rise before their rate is locked, their monthly payment could increase enough to jeopardize loan approval.
Suddenly, the $275,000 transaction falls apart.
Without those proceeds, your buyer may no longer have the funds necessary to purchase your $350,000 property.
ONE mortgage denial has now placed THREE families' financial plans in jeopardy.
Unfortunately, the chain can become even more complicated.
What happens when the buyer purchasing that $275,000 property ALSO needs to sell another home?
Your closing now depends on multiple families, multiple lenders, several property inspections, appraisals, financing approvals, and contractual deadlines.
One unexpected problem anywhere in that chain could unravel transactions involving people who have never even met.
Meanwhile, YOUR home has been sitting under contract instead of being actively marketed to other qualified buyers.
Those lost weeks can become particularly expensive in a housing market where buyers are already difficult to find.
And here's where professional real estate representation becomes so important.
At America's Real Estate Experts, our responsibility isn't simply to bring homeowners the highest offer.
It's to evaluate whether that offer has a realistic path to closing while helping protect the seller's equity, time, and financial interests.
A $345,000 contingent offer that collapses can ultimately cost a homeowner more than a $335,000 offer from a financially qualified buyer who can close without depending on another home sale.
That's why our professional position is straightforward.
WE WOULD NOT RECOMMEND ACCEPTING A HOME-SALE-CONTINGENT OFFER IN TODAY'S MARKET.
Our sellers deserve more than an attractive number written on a purchase agreement.
They deserve knowledgeable representation that considers mortgage financing, buyer qualifications, contractual exposure, market conditions, and the consequences of a failed transaction.
Because selling a home isn't simply about transferring ownership.
For many families, it's the financial foundation of everything they've been planning.
Perhaps you've spent years building equity so you can finally retire comfortably.
Maybe your growing family needs another bedroom, or your aging parents need you living closer.
You've already found the next house, calculated your finances, and started preparing for the move.
Your children might even be choosing their bedrooms while you're making arrangements for the next chapter of your family's life.
Then somewhere two transactions away, a buyer you've never met receives a phone call explaining that their mortgage financing has fallen through.
Their purchase collapses, the next family's sale falls apart, and suddenly the home you've been preparing to leave is no longer under a dependable contract.
Everything you've been planning is now at risk because someone else's financial circumstances changed.
At America's Real Estate Experts, we believe the greatest responsibility a REALTORĀ® carries isn't convincing someone to accept an offer.
It's understanding what could happen to that family AFTER they sign.
When your home represents years of hard work, financial sacrifice, and dreams for the people you love, shouldn't the real estate company representing you be protecting your family's future instead of gambling it on the financial stability of strangers?
