Submitted by: Cathy Pennington
When you need to sell your home so that you can use the funds to purchase another home, you may need to make an offer with a sale contingency. A sales contingency protects buyers from carrying two mortgages. A qualified realtor can help navigate you through this tricky situation. With a home sales contingency in place, the transaction is dependent upon the sale of the buyer’s home. There are several terms to negotiate in a sales contingency. You will need to specify a time frame, which is often 30 to 60 days. If you do not find a buyer for the home within that time frame, the seller can void the contract or extend the time frame. Often times, the seller’s will ask for what is called a kick-out clause. With this clause, a seller can continue to market their property while you are trying to sell your house. If a new buyer places an offer, you will have 72 hours to continue with the contract or forfeit your offer.
Sales contingencies can put you at a disadvantage, especially in a seller’s market. When you are in a sellers market, I highly recommend staying in temporary housing once you sell your home while you look for the home you will purchase if at all possible. If this is not possible, a sales contingency may be your best option.
I would love the opportunity to discuss your situation with you and give you all of your options so that you can make a decision that works best for you and your family. I service many areas in Middle Tennessee, to include Rutherford, Davidson, and Williamson County to name a few.