Short Answer
A home sale contingency means the buyer's offer is contingent on them selling their current home first. Accepting a home sale contingency adds risk because the sale of your home depends on the buyer selling theirs. If the buyer cannot sell their home, the deal falls through. You can protect yourself by including a kick-out clause, which allows you to continue marketing your home and accept a backup offer. If you receive a better offer, the first buyer has a set time, typically 24 to 72 hours, to remove their contingency or void the contract.
A home sale contingency is one of the riskiest contingencies for sellers. It means your home sale is tied to the buyer's ability to sell their home. If their home does not sell, your deal falls through. This can delay your sale and cause you to miss out on other potential buyers. However, accepting a home sale contingency may be necessary in a buyer's market or if you are having trouble attracting offers. To protect yourself, include a kick-out clause, also called a release clause or right of first refusal. This clause allows you to continue marketing your home and accept other offers. If you receive a better offer, you give the first buyer a set time to remove their home sale contingency or void the contract. You can also negotiate a shorter home sale contingency period, such as 30 to 45 days, and require the buyer to actively market their home and accept a reasonable offer. Some buyers may offer a higher price or better terms in exchange for a home sale contingency, which can make the risk worthwhile.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
A home sale contingency is a risk, but it is not always a dealbreaker. I have successfully closed transactions with home sale contingencies by including strong kick-out clauses and keeping the pressure on the buyer to sell their home. If you are considering an offer with a home sale contingency, I will help you evaluate the buyer's home, their agent, and the likelihood of a quick sale. Let us discuss the risks and whether the offer makes sense for your situation.
Related Questions
Ready to Take the Next Step?
Every situation is unique. Let us talk about your specific goals and create a plan that works for you.