A contingency contract is normally thought of as an "if, then" type of agreement. "If...I sell my existing home, Then...I'll buy this one". To date, I have never written one. That is not to say that I never will, but the circumstance that has this agreement making sense has not yet presented itself.
Simply put, you effectively are locking in a price today that is most likely higher than if you waited to sell your existing home and then submitted your offer. When you ask a seller to take their home off the market or at the very least, market the house far less aggressively, they typically expect some concession for their part. That normally is found in the higher sales price.
If the home is for sale when your home finally sells, then the price may have been lowered in the lag time or at the very least, softened the negotiations somewhat.
Unless the home is a one-of-a-kind dream house and nothing else will do, I try to steer clear of any contingency contract. The best financial deal is also the one with the least emotion attached.
Louisville Real Estate Expert
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