What Is a Home Sale Contingency, and Will Omaha Sellers Accept One?
Can you buy a home in Omaha if you need to sell your current home first?
Yes. One option is a home sale contingency, which makes the purchase of your next home dependent on selling your current property under agreed-upon terms.
Whether an Omaha seller will accept that type of offer depends on the property, market conditions, competing offers, and the terms of the contingency.
What Is a Home Sale Contingency?
A home sale contingency is a condition in a purchase agreement that connects your purchase of a new home to the sale of your existing home.
In simple terms, you are telling the seller:
“I want to buy your home, but I need to sell my current home first.”
The agreement should clearly outline the applicable deadlines and conditions.
Because contracts are legally binding, buyers and sellers should work with their real estate professionals and appropriate legal professionals when they have questions about contract terms.
Why Would a Buyer Need One?
The most common reason is financial.
A homeowner may need the proceeds from the sale of their current property to help fund the purchase of their next home.
A contingency can reduce the risk of committing to a new purchase without knowing whether the current home will sell.
It can be particularly relevant when a homeowner does not want to carry two mortgages.
Will Omaha Sellers Accept a Home Sale Contingency?
Sometimes, but there is no guarantee.
From the seller's perspective, a contingent offer introduces uncertainty.
The seller may have to wait for another property to sell before knowing whether the buyer can complete the purchase.
If the seller has multiple strong offers, they may prefer an offer without a home sale contingency.
But if a property has been on the market longer, competition is lower, or the seller has flexibility with timing, they may be more open to considering one.
What Makes a Contingent Offer Stronger?
A buyer can take steps to make the overall offer more attractive.
Have Your Current Home Ready
A seller may feel more comfortable if your home is already listed, prepared, or under contract.
There is a significant difference between saying your home will be listed soon and showing that the sale is already moving forward.
Be Competitive on Other Terms
A contingency does not mean you can overlook everything else in the offer.
Price, financing strength, closing timeline, earnest money, inspection terms, and other provisions can all affect how a seller evaluates the offer.
Keep the Timeline Clear
The seller should understand what needs to happen and when.
Your real estate professional can help explain the proposed timeline and how the contingency fits into the transaction.
What Is a first right of refusal?
Some contingent purchase agreements may include a provision that allows the seller to continue marketing the property and potentially require the buyer to make a decision if another offer comes in.
The exact terms depend on the contract.
This can give sellers additional protection while still allowing a buyer with a home to sell to pursue the property.
Because contingency and kick-out provisions can have significant contractual consequences, buyers and sellers should carefully review the specific language with their real estate professionals and legal counsel when appropriate.
What Happens If Your Home Does Not Sell?
This is one of the most important questions to answer before making a contingent offer.
The purchase agreement should establish what happens if the required sale does not occur within the agreed timeframe.
Depending on the contract, the parties may have options to extend the timeline, remove the contingency, or terminate the agreement.
Do not assume what happens. Read the actual contract and discuss the terms with your agent and attorney if necessary.
Should You Make a Contingent Offer in Omaha?
It depends on the specific property and your financial situation.
A contingent offer may make sense if:
You need the proceeds from your current home.
You cannot comfortably carry two mortgages.
Your current home is market-ready.
The property you want is a good fit.
The seller appears open to the structure.
You can move quickly when necessary.
It may be more difficult on a highly competitive listing where the seller has several non-contingent offers.
How The Pierce Group Can Help
Sarah and Bradley Pierce can help you understand how your current home sale fits into your next purchase.
They can help you evaluate your options, discuss how the contingency may affect your offer, and coordinate the moving pieces between the two transactions.
Their goal is not to promise that a seller will accept a contingency. It is to help you understand the situation and make an informed decision based on the property and current market.
Final Thoughts
A home sale contingency can give buyers a path to purchase their next Omaha home without taking on unnecessary financial risk, but it also creates additional considerations for the seller.
The stronger your overall offer and the clearer your timeline, the easier it may be for a seller to understand the proposal.
If you're selling your current home and looking for your next home in Omaha, talk with Sarah and Bradley Pierce of The Pierce Group before you start writing offers. They can help you think through the timing and options for your specific situation.
Disclaimer:
This article is for general informational purposes only and does not provide legal, tax, financial, lending, or contractual advice. Contingency provisions vary by contract and situation. Buyers and sellers should review contracts carefully with their real estate professional and seek advice from a qualified attorney when appropriate.
