Akron Move-Up Buyers: When to Include a Contingency on Your Current Home's Sale

The Contingency Question Every Move-Up Buyer Faces

If you are buying your next home before selling your current one, you face a critical offer decision: should you include a contingency on the sale of your existing property? A sale contingency protects you from carrying two mortgages if your current home does not sell, but it can make your offer less competitive in a multiple-offer situation and signal risk to the seller of your target home.

The right answer depends on your specific financial position, the competitiveness of the market you are buying in, and the condition and marketability of your current home.

When a Sale Contingency Makes Sense

If you do not have the financial reserves to carry two mortgage payments simultaneously, even for 60 to 90 days, a sale contingency is a reasonable protection. Without it, you are exposed to a scenario where your current home does not sell on schedule and you are funding two housing costs out of the same income. For buyers without strong reserves, that exposure is a real risk worth the competitive disadvantage the contingency creates.

When to Consider Waiving the Contingency

Buyers with sufficient savings to bridge a gap between the two closings, or access to a bridge loan that leverages current home equity, may be in a position to make a non-contingent offer. In a market where sellers are receiving multiple offers, a non-contingent buyer has significant advantages in price and terms negotiation. The cost of bridge loan interest, typically 60 to 90 days, is usually a fraction of the value created by being a stronger buyer.

The Kick-Out Clause Alternative

Some sellers will accept an offer with a sale contingency if it includes a kick-out clause, a provision allowing the seller to continue marketing the home and accept another offer if a better opportunity arises, giving the contingent buyer a defined window (often 72 hours) to waive the contingency or exit. This is a middle-ground approach that gives sellers flexibility while giving buyers some protection. Understanding how to negotiate these provisions is part of what experienced move-up specialists do.