How To Buy A House Contingent On Selling Yours

 

“Contingent” is a powerful word, especially when it comes to something as serious as spending years of hard-earned savings on the down payment of a new home. “Contingent” signifies something being conditional, and not being “locked down”. That powerful word can save you from major financial stress when moving from one home to the next.

When families outgrow their former dream home and start looking for the bigger home in the better location, they’re faced with two opposite, but equally daunting fears:

 

  • How do I buy my next home with the equity in my current home, without being homeless for the time between selling my current home and closing escrow on my next?
  • How do I avoid owning two homes at once?

 

The Double Contingency: Protected from Front and Back

Contingency Number 1

When you buy a house contingent on selling yours, it means you buy the house only in the case that your current home sells. You have a worry-free “exit” that protects you and your family from being homeless after your current home sells. We (Dillon and Ken) will add a Contingency Clause to the offer you write on your future home, and if the Seller accepts, you’ll feel safe knowing that you are not obligated to buy it if your current home doesn’t sell.

Contingency Number 2

When you sell your current home contingent on buying another, it means you sell your current home to a Buyer only in the case that you find your next home and buy it first. This prevents you from selling your Current Home and not having another to move into.

 

I know what you’re thinking… If both the sale of my Current Home and the purchase of my next home are contingent on each other, how will either one close escrow?

We write contingencies on both sides so that you are protected on both sides, and we lift those contingencies after all requirements have been met. This is called closing concurrently.

The Bottom Line

Leave it to us to make sure you are in a position you’re comfortable with. Dozens of the homes we’ve sold have been Contingent transactions. You aren’t alone in your concern, and you certainly won’t be the first to have a successful Contingent Sale and Purchase with Team Hall Realty Group.

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