A home sell contingency is a clause in a real estate contract that makes the sale of a property contingent upon the successful sale of the buyer's current home. In other words, the purchase of the new home is contingent upon the sale of the buyer's existing home. This type of contingency is often included in real estate contracts to protect the buyer in case their current home doesn't sell in a timely manner or for the price they were hoping for. This way the buyer can back out of the purchase without penalty if their home doesn't sell.
The home sell contingency typically states a specific time frame within which the seller's current home must be sold and specifies what happens if the seller's home doesn't sell within that time frame. For example, the contract may state that the buyer has 30 days to sell their current home and if they are not successful within that time frame, the contract becomes null and void, and the buyer can walk away from the purchase without penalty.
It's important to note that the home sell contingency can make a property less attractive to buyers who don't want to take on the added risk of purchasing a property that is contingent on another property selling. Some sellers may be less likely to accept an offer with a home sell contingency and may prefer offers from buyers who don't have a home to sell.
A home sale contingency is a condition that must be met before the sale of a home can be completed. It often refers to a clause in the purchase contract stating that the sale of the property is contingent upon the successful sale of the buyer's current home. This means that the buyer is essentially saying, "I'll buy your home, but only if I can sell mine first."
From a seller's perspective, having a home sale contingency can make the sale process more difficult, because it adds uncertainty to the transaction. If the buyer is unable to sell their current home, the sale of the property in question may fall through. As a result, a home with a sale contingency may be less attractive to buyers who are looking for a more certain transaction.
Additionally, as a home is marketed with a home sale contingency, many people will be deterred by the uncertainty and may decide not to put in an offer. This will decrease the pool of potential buyers.
Sellers who are looking to sell their property quickly and for the highest price possible may want to avoid home sale contingencies, if possible. Instead, they may consider selling their property as a "For Sale by Owner" or using a real estate agent who can help them market their property effectively to potential buyers.
However, in some cases, for example in a slow housing market, seller might consider a home sell contingency in order to move the property and make sure the sale is completed.