Buying a Home with a Home to Sell Attempting to purchase a home while owning a home is something that can cause sellers anxiety. However, there are a few options to help a seller avoid this particular stressor. The most commonly known option is referred to as a “contingent offer,” meaning purchasing the new home is contingent on the sale of one’s existing property. This makes a lot of buyers more comfortable as it eliminates the possibility of owning two homes at once. There are significant downsides to this approach, though, which should be fully understood.
1. Due to the fact that your offer on the new home is contingent upon receiving an offer and the successful closing of your existing home, this type of offer is inherently weaker than other types of offers. Due to this weakness, the chances of getting your offer accepted are lower. This usually means that a contingent offer will need to be higher in purchase price than other offers in order to be accepted. 2. Someone purchasing a home with a contingent offer often feels pressured to accept a lower offer on their existing home than they might otherwise. This is because a contingent offer can be “bumped” by the other seller at any time prior to receiving an executed purchase agreement for their existing home.
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