Buyers can also make an offer contingent on the sale of their home. It happens all the time but those contingencies get complicated. Usually offers that are contingent on the sale of real estate can be bumped by non-contingent offers from other buyers.
Here are a few things that can and do go wrong:
- A non-contingent offer comes along and the seller accepts it and the contingent buyer’s offer gets canceled because they do not get an offer on their home fast enough.
- The contingent offer isn’t accepted because there are several other offers that are non-contingent.
- The seller asks that the contingency is removed within 48 hours because they can and they got cold feet and you all agreed to the 48 hours.
- The buyer gets an offer on their property but it is a contingent offer, which means it can not be used to remove the sale contingency.
- The buyer gets an offer but the financing on that offer falls through and offerer is unable to perform.
Sometimes there is a chain of 3 or more home sales that depend upon that first home sale in the chain closing.
When selling your home is contingent on the sale of someone else’s home it will cause a lot of extra stress if your purchase is also contingent on a sale.
I have been through chains of sales with multiple contingencies and they often work out. I have learned to go into these situations believing that everything will work out and I encourage my clients to do the same.
In a strong seller’s market is especially important for home sellers to have a plan and know where they are going to live after their home is sold.