What to Do if a Buyer Has to Sell His/Her Home First?
Are you looking to sell your home? If so, there's a good chance that many of your prospective buyers will actually be in the process of trying to sell their own homes before purchasing a new one; it's just the way the market works. So, just how do you work with a potential buyer who is still waiting to sell his or her own home? We've got a couple tips.
Working With a Contingency Clause
If you receive an offer from a buyer who claims he or she needs to sell an existing home before finalizing a sale on your home, make sure you have what's known as a "contingency clause" in writing. This clause essentially states that any accepted offer is contingent on your buyer selling his or her home and closing within X number of days.
Consider Adding a "Kick-Out" Clause aka "Right of First Refusal"
If you're worried about your buyer not owning up to his or her end of the deal--or if you want to be able to potentially entertain offers from other serious buyers--consider asking the buyer to sign a contract with a "kick-out" clause. This typically stipulates that, in the event that you're presented with another offer, the original buyer will have X amount of time (usually 48 hours) to complete the agreed-upon deal. If he or she fails to complete the deal, you may sell the home to the new buyer.
Selling a home while waiting for a buyer to sell their home can be stressful, but by getting the right terms in writing, you'll be in good shape.
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