You found a home you love. You’re already deciding where the couch will go, and you can
practically picture yourself drinking coffee on the porch.
There’s just one little detail: you need to sell your current home first.
Meanwhile, the seller is thinking, “I’d love to sell you my house. But how long am I supposed to
wait for yours to sell?”
Welcome to the home sale contingency conversation. It can feel like a real estate version of
“you go first,” but with a clear plan, it doesn’t have to become a standoff.
What Is a Home Sale Contingency?
A home sale contingency makes a buyer’s purchase dependent on selling their existing property
under the terms and deadlines in the contract. It can give buyers a contractual way to exit if that
sale does not happen, while giving sellers a framework for deciding how long they are willing to
wait. The protection depends on the actual wording and compliance with its requirements.
In everyday language, the buyer is saying, “I want to buy your house, but I need my current
house to sell before I can complete the purchase.”
Here, we’re focusing on that specific situation. Inspection, appraisal, and financing
contingencies address different issues; a home sale contingency is about coordinating the sale
of one property with the purchase of another.
Home Sale vs. Home Settlement Contingency: What’s the Difference?
The biggest question is how far along the buyer’s current home is in the selling process.
If the buyer still needs to find a buyer for their property, the contingency needs to address that
sale process as well as the closing. If their home is already under contract, a settlement
contingency can address the remaining hurdle: getting that existing sale to the closing table.
Think of it this way: “We still need to list our house” and “Our house is under contract and
scheduled to close” are very different starting points. Neither tells you everything about the
likelihood of success, but they give you very different questions to ask.
Buying a Home Before Selling Yours: Start With the
Numbers
Before you fall in love with the next house, have a direct conversation with your lender. Do you
need your current home to sell to qualify for the next mortgage? Do you need the proceeds for
your down payment and closing costs? Or would you simply prefer to avoid the overlap?
Ask your lender to explain your approval assumptions, including whether selling your existing
property is a condition. Then build your offer around what you can actually do.
There is a big difference between “We hope our house sells quickly” and “We have a workable
plan if it takes longer.” Your purchase deserves the second one.
How Buyers Can Make a Home Sale Contingency More
Appealing
Put yourself in the seller’s shoes. They’re being asked to make their next move depending partly
on a property they don’t own and a sale they don’t control.
Give them something concrete to evaluate. Work with your agent on a realistic listing date,
pricing strategy, photography, and showing plan. If your house is already listed, be ready to
discuss its progress. If it’s under contract, your agent can help communicate relevant milestones
and remaining hurdles without unnecessarily sharing private information.
For someone selling in Nottingham and buying in Bel Air, for example, the plan should consider
the comparable properties competing with the Nottingham home. A broad headline about the
Maryland housing market won’t tell the seller how your particular property is positioned.
And be honest with yourself about price. If buying your next home depends on selling this one,
“Let’s price it high and see what happens” may work against your bigger goal. Ask what price
and preparation strategy best support the move you actually want to make.
Should a Seller Accept an Offer With a Home Sale
Contingency?
A contingent offer deserves a closer look before you decide.
Start with the buyer’s sale status. Is their property ready to list? Is it actively marketed? Is there
already a signed contract? If so, what still needs to happen before settlement?
Then look at your own situation. If you have a firm relocation date or need your sale proceeds
for another purchase, uncertainty may be harder to accommodate. If your timing is flexible, you
may have more room to consider an otherwise attractive offer.
Our suggested approach is to compare the entire offer: price, requested concessions, financing,
contingency terms, timing, and your likely costs if the transaction is delayed. A higher number
on the first page shouldn’t end the conversation.
Ask yourself, “How well does this offer support my next move?” That’s a more useful question
than simply asking whether the buyer has a house to sell.
What Is a Kick-Out Clause, and How Does It Work?
A kick-out clause can give sellers a way to keep pursuing other buyers while under a contingent
contract. If the contract’s trigger occurs, the original buyer receives the agreed opportunity to
remove the specified contingency and meet any other requirements. If they cannot, the seller
may be able to terminate under the clause and proceed with another buyer.
The details matter: what triggers the notice, how it must be delivered, how much time the buyer
gets, and what proof they must provide. Don’t assume an example you read online supplies the
deadline for your Maryland transaction.
For buyers, the practical question is worth asking before you sign: “If we receive that notice, can
we actually purchase without selling first?” Review that scenario with your lender and agent
before you face a decision under pressure.
For sellers, have your agent or attorney walk through the required process before acting on
another offer. A kick-out clause still comes with contractual obligations.
What Happens if the Buyer’s Home Doesn’t Sell?
The signed contingency determines the available options and required steps. Depending on its
wording, the parties may be able to agree to an extension, proceed after a valid waiver, or
terminate under the contract. An extension should be documented properly; it should never be
assumed.
If the sale is falling behind, start the conversation early. What is causing the delay? Is there a
specific issue with a realistic resolution, or is the plan still mostly wishful thinking?
Buyers should bring facts and a proposed next step. Sellers should consider what additional
time would accomplish and how it would affect their own plans. “We need another week” is
much easier to evaluate when everyone understands what is supposed to happen during that
week.
Does the Buyer Get Their Earnest Money Back?
A valid termination under an applicable contingency may entitle the buyer to a deposit refund,
but that does not mean the money returns immediately or that every cancellation qualifies.
Maryland has specific procedures for releasing earnest money, and the applicable process can
depend on the reason for termination and whether the parties dispute the release.
Before signing, ask your agent to identify the termination requirements and explain the deposit
process. If a dispute arises, a Maryland real estate attorney can advise you about your rights.
How Do You Coordinate Selling and Buying at the Same Time?
Start planning the handoff before moving week. Ask your lender and settlement team when your
sale proceeds must be available for the purchase, and make sure both transactions are working
toward a compatible schedule.
Build a backup plan for the practical side, too. Where would you stay if the dates shift? Could
your movers adjust? What would temporary storage cost? Those aren’t glamorous questions,
but neither is discovering that your couch has somewhere to go and you don’t.
If you’re considering staying in your sold home briefly after closing, discuss a written
post-settlement occupancy agreement with your agent and settlement team. Compensation, the
move-out date, and other responsibilities need clear terms.
Can You Avoid a Home Sale Contingency?
Selling first and arranging temporary housing is one option to discuss. It may simplify the next
offer, but you’ll want to weigh the additional move, storage, and housing expenses.
If you’re considering purchasing before selling, ask your lender to evaluate whether your
finances support it and what any proposed financing arrangement would cost. Compare the full
picture, including an overlap longer than you hope for.
The goal is to choose a sequence you can manage comfortably, rather than make a promise
that depends on everything going perfectly.
Planning a Maryland Move? Give Both Transactions a
Strategy
Whether you’re moving across Baltimore County, buying in Harford County, or coordinating a
move elsewhere in Maryland, a home sale contingency deserves a conversation early in the
process.
Buyers: know what you need from your current sale and prepare that home to compete. Sellers:
look closely at the buyer’s plan and decide how the terms fit your own timeline.
At Mr. Lister Realty, we believe understanding your options is part of making a smarter move. If
you’re planning to sell one home and buy another, let’s talk about your timeline, your listing options, and the level of support you need.
Your next chapter already has enough moving parts. Let’s give the real estate part a clear
plan.
