Buying your next home before selling your current one can raise an important question:
What happens if my current home hasn’t sold yet?
For some buyers, a home sale contingency may be part of the conversation. Understanding how this contract provision works—and when it may be appropriate—can help you better prepare for your next move.
Whether you’re buying or selling in Maryland, Northern Virginia, or Washington, DC, it’s important to understand how contingencies can influence a real estate transaction.
Jeremy Rosenthal, REALTOR®, works with buyers and sellers across the DMV, helping clients understand contract terms and develop strategies that align with their goals.
What Is a Home Sale Contingency?
A home sale contingency is a clause in a purchase agreement that makes the buyer’s purchase dependent on the successful sale of their current home.
In simple terms, the buyer agrees to purchase the new property if certain conditions related to the sale of their existing home are met.
The exact language and requirements vary depending on the contract and local real estate practices.
Why Do Buyers Use a Home Sale Contingency?
Many homeowners need the proceeds from selling their current property before purchasing another.
A home sale contingency may help buyers:
- Coordinate two transactions
- Access equity from their current home
- Reduce financial uncertainty
- Align their moving timeline
Every buyer’s situation is different, so it’s important to discuss available options with your REALTOR® and lender.
How Can a Home Sale Contingency Affect the Seller?
When reviewing an offer that includes a home sale contingency, sellers may consider several factors, including:
- The status of the buyer’s current home
- The overall strength of the offer
- Proposed timelines
- Other terms included in the contract
Every seller evaluates offers based on their individual priorities and circumstances.
Alternatives to a Home Sale Contingency
Depending on your financial situation, there may be other strategies available.
Some buyers explore options such as:
- Selling their current home before purchasing another
- Coordinating both closings on similar dates
- Temporary housing between transactions
- Financing options available through their lender
The best approach depends on your individual goals, finances, and market conditions.
Questions Buyers Should Ask
Before including a home sale contingency in an offer, consider discussing these questions with your real estate professional:
- How competitive is the current market?
- What is the expected timeline for selling my current home?
- Do I need the proceeds from my sale to purchase my next home?
- What financing options are available?
- What alternatives should I consider?
Asking these questions early can help you choose the strategy that best fits your situation.
Planning Ahead Can Make the Process Easier
If you’re considering buying and selling at the same time, preparation is key.
Before submitting an offer:
- Understand your home’s estimated market value.
- Review your mortgage payoff information.
- Meet with a lender to discuss financing.
- Prepare your current home for sale.
- Work with a REALTOR® to create a realistic timeline.
Planning ahead can help reduce stress and improve coordination between both transactions.
Frequently Asked Questions
Is a home sale contingency common?
It depends on the market and the buyer’s circumstances. Some buyers include this type of contingency when they need to sell their current home before completing their purchase.
Does a home sale contingency guarantee the purchase?
No. The purchase agreement outlines the conditions that must be satisfied for the transaction to move forward.
Should I include a home sale contingency?
Every situation is unique. Discussing your financial goals, timeline, and available options with your REALTOR® and lender can help determine the most appropriate strategy.
Key Takeaways
If you’re buying and selling at the same time:
- Understand how a home sale contingency works.
- Review your financial situation early.
- Explore alternative strategies if needed.
- Prepare your current home before listing.
- Work with experienced professionals throughout the transaction.
A well-planned approach can help you navigate multiple transactions with greater confidence and clarity.
Work With Jeremy Rosenthal
Whether you’re selling a home in Bethesda, buying in Arlington, relocating to Ashburn, or moving anywhere throughout Maryland, Virginia, or Washington, DC, Jeremy Rosenthal provides knowledgeable guidance to help clients understand their options and successfully navigate every stage of the buying and selling process.
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