What is a Home Sale Contingency?
A home sale contingency is for a buyer to indicate to a seller that part of their condition to purchase the seller’s property relies on the buyer’s ability to finalize a close on their current property. This is often negotiated with a clause in a contract or with an addendum to a contract. An example of how such a contingency can be used would be if a buyer needs to sell their property in order to have the down payment required on the purchase of the new property, or would rather use their sale proceeds instead of their savings to make the down payment.
Depending on the market, it could hamper negotiations with a seller when a contingency is part of the picture.
Considering a career in real estate? Check out our upcoming pre-licensing courses here: tocrres.com/register