Should you try buying a home with a home sale contingency in place?
A home sale contingency is a clause in the purchase contract that allows you to sell your current home first. If your home sells by a certain date, you can move forward with your purchase. If it doesn’t, the seller can walk away from the purchase. These contingencies are risky for sellers because there is no guarantee that the buyer’s home will sell.
So, whether or not it’s wise for you to buy with a contingency depends on the seller of your desired property. If you’re buying a new construction home, the builder usually allows a home sale contingency up to a certain stage in the building process. If the home is still under construction, usually they won’t allow a contingency. If you’re buying a resale property, roughly 98% of all sellers won’t allow a contingency.
“It’s important to consult a real estate professional to help you decide which path to take.”
Keep in mind that you have more negotiating power without a contingency in your contract. It’s important to consult a real estate professional to help you decide which path to take, and The Franklin Team offers some unique programs for removing contingencies. One of which is the Home Buyout Program, where we offer to buy your original home if it hasn’t sold by the time you’re ready to make your new purchase.
If you have questions about this program or there’s anything else we can help you with, don’t hesitate to call or email our office. We’d be happy to help you.
