As the housing market continues to be competitive, many homeowners who are looking to sell their current home often face the dilemma of whether to wait until their home is sold to buy a new one or to go ahead and make an offer on their dream home. To help alleviate some of the stress and uncertainty, many real estate agents recommend the use of a “contingent on sale of home” contract.
A contingent on sale of home contract is an agreement between a buyer and seller that allows the buyer to make an offer on a new home while still attempting to sell their current home. The contract essentially states that the purchase of the new home is contingent upon the successful sale of the buyer`s current home. This means that if the buyer is unable to sell their current home, they are not obligated to purchase the new home.
There are several benefits to using a contingent on sale of home contract. First and foremost, it allows the buyer to put an offer on a new home without having to worry about being stuck with two mortgages. This can be especially helpful in a competitive market where homes are selling quickly.
Additionally, a contingent on sale of home contract can be a great bargaining tool for buyers. Sellers may be more willing to negotiate on price or other terms if they know that the buyer is serious about purchasing the home, but is waiting for their current home to sell.
Of course, there are also some potential downsides to using a contingent on sale of home contract. For one, sellers may be hesitant to accept an offer that is contingent upon the sale of another property, as it can delay the sale and add additional layers of uncertainty.
Buyers should also be aware that there may be time limits associated with the contract. For example, the seller may require that the buyer`s current home be under contract within a certain number of days. If the buyer is unable to meet these deadlines, the seller may have the right to cancel the contract.
Overall, a contingent on sale of home contract can be a helpful tool for buyers who are looking to purchase a new home while still trying to sell their current property. As with any real estate contract, it`s important for buyers to thoroughly read and understand the terms and conditions before signing on the dotted line. With the right approach, a contingent on sale of home contract can help you find your dream home without added stress or risk.