How to sell and buy a house at the same time

Home Sale Contingency: Your Complete Guide to Buying and Selling

You've found your dream home, but there's one problem: you can't buy it until you sell your current one. Making an offer that depends on selling your existing home first — called a home sale contingency — protects you from carrying two mortgages, but it also makes your offer less attractive to sellers.

This guide walks you through how contingencies work, what buyers and sellers gain or risk, and practical alternatives when timing doesn't line up perfectly.

What is a home sale contingency

A home sale contingency is a clause in a real estate purchase contract that makes buying a new home dependent on successfully selling your current one first. If your existing home doesn't sell by a specified deadline, you can back out of the new purchase without penalty and get your earnest money deposit back.

This clause protects you from carrying two mortgages at once. It also protects you from paying double utility bills, double property taxes, and double maintenance costs. While home sale contingencies are common, they can make your offer less attractive to sellers than offers without this condition.

How a contingent offer works from contract to closing

The process moves through several phases, each with specific requirements and possible outcomes.

Offer submission and contingency clause

When you submit an offer with a home sale contingency, your purchase agreement includes language that outlines the conditions allowing you to exit the contract. The contract specifies how long you have to sell your current home — usually 30 to 60 days, though this varies by market and seller preference.

You'll put down earnest money, which is a good-faith deposit showing you're serious. This deposit typically ranges from 1% to 3% of the purchase price. The contingency clause protects this money — if your home doesn't sell within the agreed window, you get every dollar back.

Kick-out period and active-contingent status

Many sellers add a kick-out clause (sometimes called a 72-hour clause) that lets them keep showing the property and accepting backup offers. If another buyer submits a stronger offer without a home sale contingency, the seller notifies you and gives you a short window — often 72 hours — to either remove your contingency or release the contract.

During this time, the home shows up on listing sites as "active contingent" or "contingent with right to show." This status signals to other buyers that the seller is still considering offers.

Clearing the contingency and scheduling closings

Once your current home goes under contract and you're confident the sale will close, you notify the seller that you're removing the contingency. At that point, your offer becomes firm and the purchase moves forward on more solid ground.

The best scenario involves coordinating both closings to happen on the same day or within a few days. This timing helps you avoid being temporarily without a home or carrying two mortgages even briefly.

Step-by-step guide to buying a home when your sale is contingent

Making a successful contingent offer takes preparation and strategic thinking.

1. Evaluate your current home's marketability

Before making any offer, you'll want a clear picture of how quickly your home might sell. Location, condition, price, and current market activity all play a role.

In a seller's market with limited inventory, homes often sell within days. In a buyer's market, you might wait weeks or months. A real estate agent can provide a comparative market analysis showing what similar homes in your area sold for and how long they took to sell.

2. List or get a cash offer first

The strongest contingent offers come from buyers who've already listed their home and ideally have an accepted offer on it. When you show a seller that your home is under contract with a closing date, your contingency carries far less risk.

If traditional listing doesn't fit your timeline, getting a cash offer from Opendoor gives you certainty without showings, negotiations, or deals falling through. You'll know exactly when you can close and how much cash you'll have for your next purchase.

3. Align financing and earnest money

Getting pre-approved for a mortgage — not just pre-qualified — makes your offer stronger. Pre-approval means a lender has verified your income, assets, credit, and debt. Sellers gain confidence that financing won't stop the deal.

You'll also want earnest money ready to deposit when your offer gets accepted. While the contingency protects this deposit, having it available right away shows you're financially prepared.

4. Write an attractive contingent offer

Your offer price, contingency timeline, and other terms all affect whether a seller will say yes. In a competitive market, consider offering slightly above asking price or agreeing to a shorter contingency period — maybe 30 days instead of 60.

You might also limit additional contingencies to only what's essential, like inspection and financing — though 67% of buyers include inspection contingencies and 61% include financing contingencies in their offers. Fewer conditions make your offer more appealing when sellers compare multiple bids.

5. Prepare a backup housing plan

Even with careful planning, timing doesn't always line up perfectly. If your current home sells before you close on the new one, you'll need temporary housing:

Negotiate a rent-back agreement with your buyer. Stay with family or friends. Book a short-term rental.

On the other hand, if your new home closes first, you might carry two mortgages briefly. Knowing these scenarios ahead of time helps you make informed decisions if circumstances shift.

Pros and cons for buyers and sellers

Home sale contingencies create different advantages and challenges depending on which side of the transaction you're on.

Buyer advantages

• Financial protection: You avoid being forced to buy a new home when you can't sell your current one, which could leave you with two mortgages, double closing costs, and serious financial strain.

• Single move convenience: When timing works out, you coordinate both closings and move directly from one home to another without temporary housing or storage.

• Earnest money safety: If your home doesn't sell within the contingency period, you get your deposit back without penalty.

Buyer drawbacks

• Reduced competitiveness: Sellers often prefer offers without contingencies, especially in hot markets where multiple buyers compete for the same property.

• Timing pressure: Coordinating two complex transactions at once creates stress, and delays in one can create problems with the other.

• Limited negotiating leverage: When you need the seller to accept your contingency, you have less room to negotiate on price or other terms.

Seller advantages

• Qualified buyers: Buyers making contingent offers often own property and have equity, suggesting they're financially stable.

• Backup offer flexibility: With a kick-out clause, sellers can continue marketing the property and potentially secure a better offer.

• Continued showings: Active-contingent status keeps the home visible to other buyers, maintaining momentum if the first deal falls through.

Seller drawbacks

• Higher fall-through risk: Contingent deals fail more often than non-contingent ones because they depend on a separate transaction closing successfully.

• Extended timeline: Waiting for the buyer's home to sell can add weeks or months to your selling process.

• Ongoing showing disruptions: Keeping the home show-ready during the contingency period means continued inconvenience without certainty the deal will close.

Why sellers hesitate to accept a contingent offer

Sellers have real concerns about contingent offers, and knowing what they worry about helps you address those concerns upfront.

Risk of longer days on market

Sellers worry that accepting a contingent offer takes their home off the market — or at least makes it less visible — while waiting for your home to sell. If your sale falls through after 45 or 60 days, they've lost valuable time when other buyers might have submitted offers. This concern grows stronger when sellers have their own purchase dependent on selling their current home, creating a chain of linked transactions.

Uncertain financing chains

Each additional transaction in the chain introduces more variables that could go wrong. Even if you're pre-approved, the buyers purchasing your home might face financing issues, inspection problems, or simply change their minds. Any of those outcomes could unravel the entire sequence.

Potential for fall-through

While most contingent offers do close successfully, they fail at higher rates than non-contingent deals. Sellers comparing a contingent offer to a cash offer or one from a buyer who's already sold their home will naturally lean toward the more certain option.

Ways to strengthen a contingent offer and win the house

You can make your contingent offer more appealing through strategic adjustments.

Larger earnest money deposit

Increasing your earnest money deposit — perhaps to 2% or 3% instead of 1% — demonstrates serious commitment. It gives the seller confidence you won't walk away without good reason.

Shorter contingency period

If you're confident your home will sell quickly, offering a 21-day or 30-day contingency instead of 60 days reduces the seller's risk and wait time. This works best when you've already listed your home or have strong buyer interest.

Rent-back or flexible close for seller

Offering the seller flexibility on their move-out date — perhaps letting them rent back the home for 30 days after closing — can make your offer stand out. This accommodation addresses their timing concerns while you work through your own sale.

Documentation of buyer financing

Providing a strong pre-approval letter, recent bank statements, and proof of equity in your current home gives sellers tangible evidence that you're financially capable of completing the purchase once your home sells.

Alternatives if you can't make a contingent offer work

When a contingent offer isn't working or isn't being accepted, other paths can help you move forward.

Instant cash sale with Opendoor

Instead of making your purchase dependent on selling your home, you can get a cash offer from Opendoor and choose your closing date with certainty. This approach eliminates the contingency entirely, making your offer as strong as any cash buyer's while giving you control over timing. You'll skip showings and open houses, and you'll know exactly how much money you'll have for your next purchase.

Bridge loan financing

A bridge loan is short-term financing that uses your current home's equity to help with the down payment on your new home. The loan typically lasts six months to a year and gets repaid when your current home sells. Bridge loans carry higher interest rates than traditional mortgages — typically 7% to 10% — and come with fees, but they provide immediate access to funds.

Home equity line of credit

A HELOC lets you borrow against your current home's equity, providing funds for a down payment on your new home. You make interest payments on the amount borrowed until you sell your home and pay off the line of credit. This option works best when you have significant equity and strong income to support payments on both properties temporarily.

Renting before buying

Selling your home first and renting temporarily removes all timing pressure from your next purchase. While moving twice is inconvenient, this approach gives you financial certainty and eliminates the risk of carrying two mortgages. You can take your time finding the right home and make a strong, non-contingent offer when you find it.

Move smoothly without double mortgages with Opendoor

Buying and selling homes at the same time doesn't have to mean juggling uncertainty or risking financial strain.

When you request a cash offer from Opendoor, you eliminate the biggest variable in a contingent offer — whether your home will sell in time. You'll receive a competitive offer within 24 hours, choose your closing date up to 60 days out, and move forward knowing exactly when you'll have funds for your next home. This certainty transforms your buying position from contingent to competitive.

Frequently asked questions about home sale contingencies

Does the buyer get earnest money back if the home sale contingency fails?

Yes. Earnest money is protected when you include a home sale contingency in your contract. If your current home doesn't sell within the specified timeframe, you can end the purchase agreement and receive your full deposit back without penalty.

Can you make an offer on a house that is already contingent?

Yes. You can submit a backup offer on a property that's already under contract with a contingency. If the first buyer's contingency isn't satisfied and they walk away, your offer automatically moves into first position.

How long do home sale contingencies typically last?

Most contingencies run 30 to 60 days, though the exact timeframe depends on local market conditions and how quickly homes in your area typically sell. Your agent can help determine a realistic contingency period for your situation.

What does "contingent continue to show" mean on a house listing?

This status means the seller has accepted an offer with contingencies but is keeping the home actively marketed to other buyers. The seller can still accept backup offers and, with a kick-out clause, can potentially move forward with a stronger offer if one comes in.

Can sellers cancel a home sale contingency agreement?

Sellers can't cancel the agreement simply because they found a better offer — they're bound by the contract terms. However, if the contingency period expires and you haven't removed the contingency or sold your home, the contract typically ends automatically.