How do I write a purchase offer contingent on selling my existing home?
Answered by Allen Markel, REALTOR®, Texas Premier Realty ·
Short answer
A purchase offer contingent on selling your current home uses an addendum to the standard TREC contract. The contingency makes your offer conditional on closing the sale of your existing home by a set date you choose. This protects you from buying before you sell, but sellers often resist it because it delays their certainty. I help structure these offers and negotiate the terms that work for both sides.
What does a sale-contingent offer look like?
Your offer is written on the standard TREC One to Four Family Residential Contract. An addendum is attached that makes your obligation to close contingent on the closing of the sale of your current home by a specific date you choose. The addendum spells out that date, what happens if your home does not sell by then, and whether the seller can continue to show and accept backup offers while your contingency is in place.
The contract still includes your earnest money and option fee (if you negotiate one). Both are due within three days of the effective date. The option fee buys you the right to terminate during the inspection period; earnest money is your commitment to the deal. If you leave the contingency in place and your home does not sell by the deadline, you can terminate and get your earnest money back, but the option fee is not refundable.
Why do sellers hesitate on sale-contingent offers?
A seller's main concern is certainty. If your offer is contingent on selling your home, the seller does not know whether the deal will close. They may want to keep showing the property and accept backup offers from buyers who are not contingent. Some sellers will reject a contingent offer outright; others will accept it but reserve the right to keep marketing.
The longer your contingency period, the more uncertain the seller feels. A shorter deadline makes your offer more attractive, but it puts pressure on you to sell quickly. The trade-off is real: you gain protection, but you lose some negotiating power on price and terms.
How do you structure the contingency to make it work?
Several factors matter. First, set a realistic closing date for your current home. If you have not listed it yet, that date is further out and the contingency is weaker. If your home is already listed and under contract, the contingency is much stronger because the date is near and certain.
Second, decide whether you want the seller to be able to keep showing the property and accept backup offers. Many sellers will only accept a contingency if they can do this. You can also negotiate a clause that gives you a short window to remove the contingency if the seller receives another offer. That forces you to decide: drop the contingency and commit, or walk away.
Third, be clear about what "closing" means. Does your home have to close, or just go under contract? Most contingencies require the sale to close, not just be under contract, because a contract can still fall apart.
The right structure depends on your timeline, how quickly your home is selling, and how much the seller wants your offer. Talk to us to find the right option for your circumstances.
Common follow-up questions
Can I make an offer without a contingency and then add one later?
No. The contingency must be in the contract when you make the offer. Once the seller accepts, you cannot add a contingency without the seller's written consent. If you want to change the terms, you would need to renegotiate.
What if my home does not sell by the contingency deadline?
You can terminate the contract and get your earnest money back (but not your option fee, if you paid one). The seller then moves on to a backup offer or relists the property. You are not obligated to close.
Is a sale contingency the same as a financing contingency?
No. A financing contingency protects you if your loan falls through. A sale contingency protects you if your current home does not sell. Both can be in the same contract, and both have deadlines and conditions.
Can I remove the contingency early if my home sells before the deadline?
Yes. Once your home closes, you can remove the contingency in writing and commit to the purchase. This makes your offer stronger and may help with negotiations.
Sources
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Related questions
Will sellers reject my offer if it has a home sale contingency attached?
Yes, many sellers will reject an offer with a home sale contingency because it makes closing uncertain. The seller takes on risk that your purchase depends on selling your current home first.
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