I Have to Make an Offer Contingent Upon Selling My House. How Do I Sweeten the Deal?
When you closed on your first home, you probably weren’t thinking that one day you’d want to sell. But after a few years, it’s easy to outgrow your space. Or, maybe you have to relocate for a new job — or it’s time to downsize.
Whatever your reason, if you currently own a home, it can actually make it harder to shop for a new one. Getting the timing right — selling your old house, closing on a new house, and then moving into your new house — can be a challenge.
This is why many buyers make offers on their new home that include a sales contingency. With a sales contingency in your offer, you won’t have to close on your new home unless you’ve sold your old home. But a sales contingency could also make it harder to get an offer accepted.
Christina Roberto, a top agent in Georgetown, Texas, who works with 78% more single-family homes than the average agent in her area, has had offers with sales contingencies accepted even in a hot seller’s market. “You can offer a bigger option amount, more earnest money, don’t ask for home warranties — there are unconventional ways to win,” she says.
If you have to make an offer contingent upon selling a house, here’s what you need to know.
What is a contingency?
When you make an offer on a house, it could be as simple as a letter or as complex as a several-page legal document. Regardless of its format, it will often include contingencies.
A “contingency” is another way to say “a term or condition that must be met before the sale can move forward as planned.”
If the contingency isn’t met, it usually means that you can drop out of the purchase and get your earnest money back. There are two common contingencies that your agent will probably talk to you about including in your offer if you’re already a homeowner: a sales contingency or a settlement contingency.
