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.

Check out more helpful links to help further confuse you:

http://www.wickenslaw.com/firm-newsletter-archive/what-is-a-right-of-first-refusal/

http://realtytimes.com/agentnews/agentadvice1/item/10022-20050715_handlerefusal

https://en.wikipedia.org/wiki/Right_of_first_refusal

http://www.pon.harvard.edu/daily/business-negotiations/blessing-or-curse-the-real-estate-right-of-first-refusal/

http://oureverydaylife.com/right-refusal-mean-real-estate-law-19954.html

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