Understanding Home Sale Contingencies in Real Estate Transactions

November 26, 2025 - 10:19

When purchasing a new home before selling your current one, you might consider including a home sale contingency in your offer. This clause indicates that the purchase of the new property is contingent upon the successful sale of your existing home. However, it's important to note that sellers often perceive these offers differently compared to those without contingencies.

Sellers may be hesitant to accept offers with home sale contingencies because it introduces uncertainty into the transaction. They may worry that the buyer's current home may not sell quickly or at the desired price, potentially delaying the closing process. As a result, sellers might favor buyers who can demonstrate financial readiness, such as those with cash or pre-approved financing.

For buyers, including a home sale contingency can provide a safety net, allowing them to secure a new home without the risk of owning two properties simultaneously. However, it's crucial to approach this strategy carefully and work closely with a knowledgeable realtor to navigate the complexities of the market effectively.