A contingent home sale is a type of real estate transaction in which the buyer agrees to purchase a property only if the seller’s current home sells first. A contingent sales contract typically stipulates that the purchase price for the new home will be reduced by an amount equal to what the seller receives from selling their existing property. This type of arrangement allows the seller to get a good price on their current home, but avoids the potential of being stuck with two mortgages if their home takes longer than planned to sell.
Contingent home sales are most commonly used by sellers who want to avoid making costly concessions or facing steep price reductions in order to move into another property. By having a sale lined up already, sellers can be assured that they will receive their asking price for the home, and avoid falling into a competitive bidding war. Buyers are also often more inclined to make offers on homes where there is little risk of falling through on the sale of their own current residence.
If either party ends up backing out of a contingent sale, they may be held liable for breach of contract, and could even face legal damages in some cases. Most real estate contracts include a contingency clause that allows the buyer to potentially walk away from the sale without penalty if their current home does not sell within a specified time period.
One of the key considerations that homebuyers must take into account when looking for their next property is whether or not they have an existing home that they need to sell first. This type of transaction is known as a contingent home sale, and it can be an effective way for buyers to minimize their risk when buying a new house. There are both advantages and disadvantages to using this strategy, so potential homebuyers should consider all the facts before deciding whether or not a contingent sale makes the most sense for them.
If selling your home the traditional way is taking too long you have another selling option by selling to a local Real Estate Investor. You typically won’t get as much money as if you sold through a Real Estate Agent but the benefits are there as well. If you have a timeframe you need to stick to or if there are repairs that need to be made and you don’t have the cash to make them then you should contact a local investor to see what fair cash offer they could bring to the table. If you are in the San Marcos Texas area reach out to the cash home buyers at Houses 4 Texas LLC.