Buying Before Selling With a Home-Sale Contingency

A Staten Island buyer can purchase a new home before selling their current one by using a home-sale contingency, but the offer is considerably stronger when the existing property is already listed, properly priced and moving toward a contract.

A home-sale contingency makes the purchase dependent on the buyer successfully selling their current property. It can protect the buyer from being required to complete the new purchase without receiving the anticipated proceeds, but it also creates additional uncertainty for the seller.

List Your Current Home Before Making the Offer

Your offer is stronger when your current home is already on the market. A seller may hesitate to accept a contingency if the buyer has not selected a real estate agent, prepared the property or established a realistic asking price.

When I represent a Staten Island buyer who also needs to sell, I review the current home’s condition, comparable sales and likely marketing timeline before we pursue the next property. Ideally, the home is actively listed—and even better, has an accepted offer that is progressing toward a signed contract.

Understand Why the Seller May Hesitate

The seller is taking on the risk that your sale could be delayed or fall apart. If your buyer encounters an inspection, appraisal, financing or title problem, that issue can also delay your purchase.

This is why the seller of the home you want may prefer an offer without a home-sale contingency, even when your price is competitive. The goal is to show that your sale is organized, realistically priced and supported by qualified professionals.

Make the Contingency Specific

The contract should clearly define what must happen and by when. The exact contingency language may address listing status, contract deadlines, closing requirements and what happens if the buyer’s sale does not proceed.

In NY, the attorneys should draft and review the legal terms. As a REALTOR®, I communicate the negotiated business points and timeline to the attorneys, but I do not create legal provisions or advise a buyer to sign language they do not understand.

Consider a Kick-Out Provision

A kick-out provision may make the contingency more acceptable to the seller. Depending on the negotiated contract, the seller may be allowed to continue marketing the property while the buyer works toward selling their current home.

If the seller receives another acceptable offer, the original buyer may have a specified period to remove the contingency or allow the contract to end. The rights, deadlines and procedures depend entirely on the wording approved by the parties’ attorneys.

Strengthen Everything Else in the Offer

A contingent buyer should reduce uncertainty wherever reasonably possible. A current preapproval, documented funds, responsive lender and realistic closing schedule can help.

The buyer may also offer flexibility concerning the closing date or possession, depending on what the seller needs. I focus on finding terms that improve the offer without exposing the buyer to obligations they cannot safely meet.

Review Alternatives Before Assuming a Contingency Is Required

Some buyers may qualify to purchase before selling without making the new contract contingent on the sale. Potential options can include bridge financing, a home-equity credit line, mortgage recasting or a lender’s buy-before-you-sell program.

Each option has qualification requirements, costs and financial risks, so it should be reviewed with the appropriate lender, attorney and financial professional before an offer is submitted.

If you need to sell a Staten Island home before purchasing your next one, contact Frank Esposito to map out both transactions before you begin making offers.