Lately, I’ve noticed an uptick in offers that include a “sale of buyer’s property” contingency, though I can’t say for certain if this is the case for every agent in our market or just an anecdote based on my own recent transactions. Even so, I think it’s important for both buyers and sellers in Sarasota to be familiar with how this contingency works and consider keeping an open mind.
A “sale of buyer’s property” contingency allows a buyer to make an offer on a new home that’s dependent on the successful sale of their current property. It offers buyers peace of mind, especially in situations where coordinating two moves can be tricky, and it can make the transition from one home to the next much smoother. From the seller’s perspective, accepting an offer with this type of contingency may have once been seen as too risky, especially during times of limited inventory and intense buyer competition. However, the market has shifted, and with more homes available, some sellers are now more willing to consider these contingencies, particularly if the buyer’s existing property is already under contract.
If you’re a buyer considering this route, you’ll present a much stronger case to sellers if your home is at least under contract (pending sale) before making an offer with this contingency. This signals to the seller that you’re committed and that the road to closing should be relatively straightforward. Sellers, on the other hand, should weigh the timeline and strength of the buyer’s sale, as accepting this contingency may lengthen the closing time, but can also mean your home is moving toward a sure sale with engaged buyers.
While these contingencies may not be standard in every transaction, the evolving market means both buyers and sellers can benefit from understanding how they work and approaching them with flexibility. As always, clear communication and thoughtful negotiation between all parties is key to a successful outcome.