Buying a new home is an exciting adventure. It does not matter if it is a property for a first time home buyer or a sale to a seasoned client there is an element of mystery that comes with the purchase. Once in awhile a buyer must sell their current home before they can close on a new home. This is called a home sale contingency and there are benefits and things that must be understood in order to make the best choices.
The Ins and Outs of a Home Sale Contingency
The definition of a home sale contingency is a person must sell their current property in order to buy another property. When a buyer finds a property that they want to buy they will usually make an offer on a new home with the agreement that their first home must sell first. If for some their first home does not sell, then the offer made on the new home is voided.
With a home sale contingency the seller may have the right to keep showing the property until another offer is made. If there is another offer that is made the seller can accept the offer, but the buyer has a specified amount of time to remove their sale contingency. On the other hand a contract can be made where no other offers can be accepted until the other person sells their home and then at that time the sale of the second property can take place.
Benefits of a Home Sale Contingency
Some of the benefits of a home sale contingency include:
- The buyer of a new home can get into a new home faster than if they can sell their home at the same time be looking for a new one.
- The option opens the window for buyers to sell their home within 30 to 60 days before the offer on the new home can be rejected.
- A potential buyer can make the deal better by being able to offer the asking price, of higher, of the home they are looking to sell.
- The option also attracts more buyers to the market because they have more options to help they buy a new home.