Can You Make an Offer Contingent Upon Selling Your Own Home?
Buying a new home while selling your current one can be a complex process. One option to consider is making an offer contingent upon selling your own home. This approach can help you manage the timing and finances of both transactions.
Can You Make an Offer Contingent Upon Selling Your Own Home?
When you make an offer on a new home, you can include a contingency that the purchase depends on the sale of your current home. This can provide peace of mind, ensuring you won’t be stuck owning two homes at once. This guide explains the following:
- What a contingent offer is
- How a contingent offer works
- Benefits of making a contingent offer
- Potential drawbacks of contingent offers
- Tips for a successful contingent offer
Here’s a closer look at each.
What a Contingent Offer Is
A contingent offer means that your offer to purchase a home includes a condition that must be met before the sale can proceed. In this case, the contingency is the successful sale of your current home. If you cannot sell your home within a specified period, you have the option to withdraw your offer without penalty.
Related: Buying a home in Tampa Bay
How a Contingent Offer Works
When you submit a contingent offer, you’ll include terms that outline the timeframe for selling your current home. This timeframe is typically between 30 to 90 days. Your REALTOR® will help you negotiate these terms with the seller. If the seller accepts your contingent offer, they may continue to show their home to other potential buyers, but your offer takes precedence as long as you meet the contingency requirements.
Benefits of Making a Contingent Offer
Making a contingent offer provides several benefits:
- Financial Security: You avoid the financial burden of owning two homes simultaneously.
- Time Management: You have more control over the timing of your move, allowing for a smoother transition between homes.
- Reduced Stress: Knowing that your new home purchase depends on the sale of your current home can reduce the stress associated with the homebuying process.
Potential Drawbacks of Contingent Offers
While there are benefits, there are also potential drawbacks to consider:
- Less Attractive to Sellers: Sellers may prefer non-contingent offers, especially in a competitive market like Tampa Bay.
- Risk of Losing the Home: If another buyer makes a non-contingent offer, the seller might accept it over your contingent offer.
- Extended Process: The process might take longer, which can be challenging if you’re eager to move into your new home quickly.
Tips for a Successful Contingent Offer
To increase the chances of your contingent offer being accepted, consider these tips:
- Price Competitively: Ensure your offer is competitive in terms of price and other terms.
- Have a Strong Selling Plan: Demonstrate to the seller that your current home is likely to sell quickly. This might include having your home already listed or even under contract.
- Work with a REALTOR®: A REALTOR® can help you navigate the process, negotiate terms, and present your offer in the best light.
FAQ About Making a Contingent Offer
Check out these commonly asked questions about making a contingent offer. If you don’t see your question here, please call our office and we’ll find you the answers you need.
Related: Should you buy a condo or single-family home?
What Happens If I Can’t Sell My Current Home?
If you can’t sell your current home within the contingency period, you can typically withdraw your offer without penalty. This protects you from being obligated to purchase the new home without the funds from your current home’s sale.
Can the Seller Accept Other Offers While My Offer Is Contingent?
Yes, the seller can continue to show their home and accept other offers. However, your contingent offer will generally take precedence as long as you meet the contingency requirements within the agreed timeframe.
How Long Does the Contingency Period Last?
The contingency period typically lasts between 30 to 90 days, but this can vary based on the terms negotiated with the seller. Your REALTOR® can help you determine a suitable timeframe.
What Can I Do to Speed Up the Sale of My Current Home?
To speed up the sale of your current home, ensure it is priced competitively, staged well, and marketed effectively. Working with an experienced REALTOR® can also make a significant difference.
Related: Steps to buying a luxury home in Tampa Bay
Are Contingent Offers Common in Tampa Bay?
Contingent offers are relatively common in real estate transactions, including in Tampa Bay. However, their acceptance depends on the current market conditions and the seller’s preferences.
Understanding how to make an offer contingent upon selling your own home can be a valuable strategy in the homebuying process. This guide has covered the key points you need to know, from the basics of contingent offers to tips for making a successful offer.
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