Buying with a Home Sale Contingency

I had the honor of serving in the Navy with Tyler, and when I separated in 2015, Tyler told me that when he and his wife were ready to buy, I’d be their guy!

In 2018, that became a reality when Tyler & Clair hired me to help them build a home in a new and up-and-coming neighborhood called “Trasona Cove.” Fast forward five years, and that up-and-coming neighborhood is entirely built out, and property values have soared in this area. 

Knowing this, these savvy homeowners wanted to take advantage of their equity and roll it over to a property. So, we met and discussed market trends, property values, and how our team would position their home to ensure we squeezed out every penny. 

They explained that their next purchase would be contingent on the sale of this home, also known as a “Home Sale Contingency” or “Sale of Buyer’s Home.” In a seller’s market, contingencies like this are rarely accepted due to their high-risk nature. Fortunately, our market is currently more neutral, and we are seeing ~20% of offers have a contingency like this. 

So, things were already in their favor. 

As we prepared to list their home, we also started house shopping. Believe it or not, we found the one on the first day out and the second home we viewed. We all felt it, but Tyler & Clair felt compelled to view a few more homes to confirm this feeling. 

It didn’t take long for us to realize that no other home would check as many boxes, so we needed to make a move for this one. 

We drafted the offer with the Home Sale Contingency, but the sellers declined it because the house tied up in the contingency has not been under contract yet. 

My clients had prepared for this, so they continued searching and hoped for a quick sale on their home when it hit the market. 

Days later, we listed their home (on a Thursday, of course) and scheduled an open house for that Saturday. We had one showing prior to the open and a few guests during the open house, but nothing too crazy. 

Most would view this as a lack of activity unlikely to result in a quick sale.

However, that was not the case! One of the groups that came through the open house on Saturday presented a compelling offer on Monday, and the sellers accepted. 

Once we had a contract, we returned and presented an offer on the home they wanted, and the sellers accepted! 

Things were looking good! 

Inspections went smoothly on both homes, appraisals were of value, and both deals closed within 24 hours of each other. 

My clients are thrilled, and I couldn't be happier for them. A contingency sale is one of the most stressful situations in real estate, and I am beyond happy that this one went off without a hitch!