How To Buy A House Contingent On Selling Yours

Key takeaways:

• A home sale contingency protects you financially by helping you avoid two mortgages while using your home equity to fund your next purchase.
• It can weaken your offer in competitive markets, where sellers may prefer non-contingent buyers or include a kick-out clause.
• Preparation improves your odds, and listing early, pricing strategically, and getting pre-approved can strengthen your position when buying and selling a house at the same time.

If you’re wondering how to buy a house contingent on selling yours, you’re probably trying to line up two major moves at once. Maybe you’ve found your dream home in Austin, TX, but need to sell your house in Phoenix first. In situations like this, many homeowners choose to buy a house contingent on selling their home, which simply means adding a home sale contingency to the purchase contract. When you’re buying a house with a sale contingency, you make an offer that depends on your current home selling by a certain date, helping you manage the process of buying and selling a house at the same time. 

If you’re currently contingent on selling your house or thinking about submitting a contingent offer on a home sale, it helps to understand how this strategy works before moving forward. From contract timelines to seller considerations and financing factors, there are several moving pieces involved. We’ll walk through each of these in more detail below so you can decide whether buying a house contingent on selling yours is the right move.

What is a home sale contingency?

A home sale contingency is a real estate sale contingency clause written into your purchase contract that makes buying a new home dependent on selling your current one. If you’re trying to buy a house contingent on selling your home, this clause states that the transaction will only move forward if your existing property sells or goes under contract within a specified timeframe. If it doesn’t, the agreement can usually be canceled without penalty, depending on the contract terms.

Why buyers use it: Many homeowners use a home sale contingency when buying and selling a house at the same time. It helps buyers avoid carrying two mortgages and reduces the financial pressure of buying a new home before selling your current home. This strategy also allows you to unlock the equity in your existing property to use as a down payment, making it easier to qualify for financing when you make an offer contingent on selling your home.

Typical timeframe: When buying a house with a sale contingency, the contingency period typically lasts between 30 and 60 days, though timelines vary based on negotiations and local market conditions. This window gives you time to list your home, secure a buyer, and close. If you’re contingent on selling your house and it doesn’t sell before the deadline, the contract generally expires. In many cases, depending on how the contingency is structured, you may walk away without losing your earnest money deposit.

Kick-out clauses: Sellers may include a kick-out clause in a contingent offer on a home sale. This allows them to continue marketing the property and accept another offer while your home sale contingency is in place. If a new buyer submits a strong offer, you’re usually given a short period (commonly 24–72 hours, depending on the contract) to remove the contingency and proceed, or the seller can cancel the agreement. These clauses protect sellers, especially in competitive markets, though terms vary by contract and state law.

5 Steps to buying a home contingent on selling yours

Buying a home while selling your current one takes coordination. While every situation is different, there are a few key steps most buyers follow when using a home sale contingency.

Step 1: List your current home

Most buyers start by putting their existing property on the market before submitting an offer. If you’re serious about buying and selling a house at the same time, having your home actively listed and priced strategically signals credibility to sellers.

A competitively priced home that’s already generating showings makes a contingent offer on a home sale far more attractive. Sellers want reassurance that your property will sell within the contingency window.

Step 2: Include a home sale contingency in your offer

When you’re ready to move forward on a new home, your agent will draft the offer with a real estate sale contingency clause built into the purchase agreement. This clause states that you’re making an offer contingent on selling your home and outlines the deadline for your property to go under contract or close.

The agreement will specify:

• The contingency timeframe (often 30–60 days)
• What qualifies as a successful sale
• What happens if the deadline isn’t met

Clear terms reduce confusion and protect both parties.

Step 3: The seller reviews 

If the seller accepts your offer, the home goes under contract with your home sale contingency in place. However, in competitive markets, sellers often add a kick-out clause.

This provision allows the seller to continue marketing the property. If another strong offer comes in, you may be given a short period (commonly 48–72 hours) to remove your contingency and proceed without it or the seller can cancel the contract.

Kick-out clauses balance risk between buyer and seller when buying a house with a sale contingency.

Step 4: Your home sells and the transaction moves forward

If your current home sells and closes within the agreed timeline, the contingency is satisfied. At that point, your purchase proceeds like a standard transaction.

You’ll move into:

• Home inspection
• Appraisal
• Final mortgage underwriting
• Closing preparation

Successfully aligning timelines allows you to sell and buy a house simultaneously, minimizing overlap and financial strain.

Step 5: If your home doesn’t sell, the contract ends

If your property doesn’t sell within the contingency period, the purchase agreement is typically terminated. In most cases, buyers can walk away without forfeiting their earnest money deposit, depending on the contract terms, since the condition of the contract was not met. The seller is then free to relist or accept another offer.

Alternatives if you can’t use a home sale contingency

• Bridge loan: A short-term loan that lets you buy your new home before your current one sells. It provides temporary financing but usually comes with higher interest rates. Discuss the costs and terms with a lender, as these loans often have higher interest rates.
• HELOC (home equity line of credit): Borrow against the equity in your current home to fund the down payment on your next property. This adds debt until your home sells, so review the terms carefully with a financial advisor or lender.
• Rent-back agreement: Sell your house but negotiate with the buyer to stay in it for a set period while you close on your new home. It reduces pressure but requires buyer approval.
• Sell first, rent short-term: Avoids a contingency altogether, but it often means moving twice and covering storage or rental costs in between.
• Trade-in or Buy Before You Sell programs: Some companies and lenders offer services that unlock your home equity upfront or make a cash offer on your behalf, allowing you to buy first and sell after.

Real-life example: How a home sale contingency works in practice

This example shows how a home sale contingency can help you transition between homes without juggling two mortgages, as long as your timeline stays on track.

Let’s say you’re selling a $400,000 home in Phoenix, AZ, and looking to buy a $500,000 home in Austin, TX.

1. You list your Phoenix home at $400K and receive an offer two weeks later.
2. Once your Phoenix home is under contract, you make an offer on the Austin home with a home sale contingency clause.
3. The seller in Austin accepts your contingent offer but adds a 45-day deadline for your sale to close.
4. Your Phoenix home sale closes within that window – freeing up equity for your down payment.
5. Once the funds clear, your Austin purchase moves forward smoothly toward closing.

Tips for making your home sale contingency offer stronger

• Get pre-approved for your next mortgage: A pre-approval letter shows sellers you’re financially prepared, even though your offer is contingent on selling another home.
• Price your current home realistically: Setting the right listing price helps your home sell faster, which reassures sellers that your contingency won’t cause long delays.
• List your current home before making an offer: Having your property already on the market, or better yet, under contract, makes your offer look more credible.
• Shorten the contingency period if possible: A 30-day window instead of 60 can make a big difference in how attractive your offer appears.
• Offer more earnest money or a higher price: Adding financial incentives shows sellers you’re serious about closing once your home sells.
• Be transparent with sellers: Let them know where you are in the process and provide updates. Sharing that your home is already listed or in contract builds trust and increases your chances of acceptance.

Buying with vs without a home sale contingency

Here’s how buying a new home with a contingency compares to buying without one. 

Feature	Buying with a home sale contingency	Buying without a contingency
Financial risk	Lower risk – you’re protected from paying two mortgages at once.	Higher risk – you may carry two mortgages temporarily if your current home doesn’t sell quickly.
Offer strength	Weaker – sellers may see it as less certain and could prefer other buyers.	Stronger – shows sellers you’re ready to close without delays.
Timing flexibility	Gives you time to sell your home first.	Requires precise timing or bridge financing.
Financing options	Relies on equity from your current home.	May require savings, a bridge loan, or other temporary financing.
Best for	Buyers who need funds from their current home sale.	Buyers who already sold or can afford to carry both homes temporarily.

Pro tip: If you’re in a competitive market, consider shortening your contingency period or offering a larger earnest deposit to make your offer more appealing.

Pros of buying a house contingent on selling yours

• Financial security: A home sale contingency protects you from carrying two mortgages at the same time. You won’t be forced to pay for your new house while still waiting for your current one to sell.
• Easier transition: It can help align timelines and reduce the chance of overlapping housing costs.
• Avoid rushed decisions: This contingency gives you time to sell your home at a fair price rather than rushing into a quick sale or settling for less.

Cons of buying a house contingent on selling yours

• Weaker offer in competitive markets: Sellers often prefer offers without contingencies, so your bid may be less attractive if multiple buyers are interested.
• Potential delays or lost opportunities: If your home doesn’t sell quickly enough, the seller may move on to a non-contingent buyer, and you could lose the property you wanted.
• Added stress of two transactions: Coordinating the timing of selling and buying at once can be complicated, requiring careful scheduling and constant communication with both parties.

The bottom line: Buying with a contingency is all about balance

 A home sale contingency offers a safety net by preventing two mortgages and easing the transition, but it can weaken your offer in a hot market. By pricing your home competitively, getting pre-approved, and being upfront with sellers, you can strengthen your position. The key is knowing your options and working with your agent to protect your finances while securing your next home.

Buying a house with a contingency to sell yours FAQs

1. Can I buy a house contingent on selling mine?

Yes. Many buyers use a home sale contingency, but in competitive markets sellers often prefer non-contingent offers because they close faster and carry less risk.

2. How long does a home sale contingency last?

Most contingency periods run 30–60 days, though the exact timeline is negotiable between buyer and seller.

3. What happens if my house doesn’t sell in time?

If your property doesn’t sell before the contingency deadline, the purchase contract usually ends. In most cases, you’ll get your earnest money deposit back, but check your contract and local laws.

4. What is a kick-out clause?

A kick-out clause allows the seller to keep showing their home and accept another offer while your contingency is in place. If another buyer comes forward, you’ll typically have 72 hours (sometimes longer) to remove your contingency or step aside.

5. Is a home sale contingency common?

Yes, especially in balanced or buyer-friendly markets where sellers may be more open to accepting them. In hot seller’s markets, they’re less common since non-contingent buyers have the advantage.

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