Let’s talk about contingencies when buying & selling a home! This is becoming much more common in our market right now- where someone has to get their home sold to be able to buy the next home 🙂 There are always pros & cons, & it depends on the property & situation.
Subject To Sale Contingency: when you are buying a home, but have a home you need to sell first, this is a contingency that can be used. This protects you throughout the process, but can be a turnoff to the seller, especially if they have other NON contingent offers to pick through. Typically you will have until a certain time to get your home under contract. This is stacking up dominoes & can be tricky & stressful.
Active Time Clause: another option, which pretty much gives the seller the option to kick out your contingent offer if they receive another offer they want to take. Typically you have 2 to 3 days to remove whatever contingency & move forward OR the seller can cancel the contract & move forward with another buyer.
Building a home but having one to sell: This can be very tricky & depends on the builder- some will NOT allow a contingency. You also usually have some nonrefundable construction deposit to put down, so there is some financial risk.
In the end, it very much depends on your home & where you are hoping to move to. We highly recommend having an experienced Realtor helping you through, as there are very many moving parts & renegotiating throughout the whole process.