What Is Home Sale Contingency?
Home Sale Contingency: A contract clause making your purchase depend on selling your current home first.
A home sale contingency makes your purchase conditional on selling your current home by a certain date. If it doesn't sell, you can cancel and get your earnest money back.
Why sellers resist it
It adds uncertainty for the seller. Many sellers reject these offers, or accept them with a "kick-out clause" that lets them keep marketing the home and give you a short window to remove the contingency if they get another offer.
Alternatives
- Sell first, then rent back or move temporarily
- Use a bridge loan or buy-before-you-sell program to tap your current home's equity
- Qualify for both payments, if your income allows
Good to know
A home sale contingency is different from a home closing contingency, which applies when your current home is already under contract.