There are situations when homeowners want to move to a new house and sell their current home all at once. While this is a possibility, it is somewhat complicated to buy and sell simultaneously. Because of this, people will often use sale contingencies in the process, and here are several things to understand about what these are, why they use them, and how they work.
The basics of a sale contingency
A sale contingency is something that a buyer adds to a purchase offer contract, and it basically states that the buyer wants to purchase the house the contract is for but can only purchase it once the buyer sells their current house. If a seller accepts this type of contract, they must realize the risks involved in accepting the deal and the buyer must realize that the seller might be warry of accepting the offer based on the risks.
The challenges of using a sale contingency when buying a house
When you are the buyer and are using a sale contingency on the contract, you should understand that there are challenges with this. The main challenge is that the seller might not want to accept the offer, as there is no guarantee that it will go through. Because of this, the seller could easily reject the offer.
The risks of accepting a sale contingency offer on your house
If you are the person who is selling the house and you receive a sale contingent offer, you should use caution when determining if you should accept it or not. If the buyer cannot sell their home, they cannot buy your house. In other words, you will have to wait for a period of time to even see if the deal will go through. If you are not willing to tie up your house sale for a period of time, you should not accept a sale contingent offer.
Why you should use one if buying and selling at the same time
The last thing to consider is that if you are the person buying a house and wanting to use this contingency, it offers a great way to protect yourself in the deal if you need to first sell your house before going through with the purchase of another home.
If you have questions about buying and selling simultaneously, talk to a real estate agent. An agent can help you learn more about your options and the best route for you to take. For more help with buying or selling a single-family home, talk to a real estate agent today.