What is a Home Sale Contingency and How Does it Work?
Hi friends! I’m Margaret O’Meara Douglas, a Realtor here in Alexandria, Virginia, with The Patterson Group of TTR Sotheby’s International Realty. Over the past five years, I’ve worn a few different hats with our team. I started out supporting operations as our Listing Coordinator, then began working with my own buyers and sellers while still assisting the team. Now, as I move fully into sales for 2026, I want to bring you along and share more about the ins and outs of real estate. There are so many terms and situations that come up in a transaction, and my goal in these “lessons” is to help you feel confident and informed about the process. Today’s Real Estate Terms 101 lesson is all about the Home Sale Contingency, a tool I’ve recently used with buyers to help find them success in both their home sale and home purchase!
The Basics: What Is a Home Sale Contingency & How Does it Work?
A home sale contingency is exactly what it sounds like: a contract that makes the purchase of a new home dependent on the sale of the buyer’s current home. For buyers, this can provide peace of mind and financial protection. For sellers, it can introduce additional risk or potential delays if not managed carefully.
When a buyer submits an offer with a contingency, it’s often because they need the proceeds from their current home to purchase a new one, want to avoid owning two homes at once, or simply want the security of being protected by a contingency. In Virginia, a Home Sale Contingency Addendum is used to clarify how long the buyer has to get their home under contract, the listing price they plan to use, and how many days they have to put their property active on the market.
For example, a 45-day home sale contingency might require the buyer to list their home in the market within 10 days of ratification, for no more than $900,000, and secure an offer and complete inspections or other contingencies (except financing) all within that 45-day window.
Preparation and clear expectations are crucial. Buyers need their current home ready to go on market, which means knowing updates or staging needs, understanding likely pricing and localized market conditions, and being ready to list quickly if necessary. Timing the market also matters. During peak buying seasons, inventory moves faster and competition is high, which can make home sale contingent offers much harder to get accepted. When competition is lower or sellers are flexible with timing, they may be more open to a contingency.
In Practice: Examples of Successful Home Sale Contingent Contracts
This year, I’ve worked with several transactions where a home sale contingency came into play. Each one was unique and offered its own lessons in communication, strategy, and flexibility.
The first example is where I represented the sellers and our buyers were home settlement contingent, which meant their home was already under contract, through all contingencies, and just waiting to close. Their offer on our listing was contingent only on that final settlement, not on finding a buyer or getting their home on the market. To best protect my clients, I called and spoke directly with the buyers’ agent in Texas, where their property was located. We discussed their market, the strength of their buyer, and the details of that contract. With that insight, I was able to give my sellers a clear understanding of how solid the buyers’ position was and how likely they were to close. Soon after we accepted their contract, the buyers’ Texas home officially closed and the home settlement contingency was removed and we were on our way to our own closing.
In another, I also represented the sellers but this time our buyers were home sale contingent but had already listed their home in Florida on the market. Their property had been on the market for a short time and was already generating interest, which gave us real-time data to evaluate the risk. Shortly after our contract was ratified, the buyers went under contract on their Florida home, but that deal unfortunately fell through after the inspection period. My sellers, however, weren’t in a rush and wanted to keep working with these buyers rather than go back on the market. Because their timing was flexible, we decided to extend the contingency period and give the buyers more time to secure a new contract. After several weeks with consistent communication between both their Virginia agent and their Florida agent, we were back on track after the buyers found a new purchaser, closed on their Florida home, and were able to move forward with ours. The extra patience paid off, and my sellers closed at a record sales price for the neighborhood and had a smooth transition into their next chapter.
The third example involved my own buyers. Early in our search, we encountered several sellers unwilling to accept a home sale contingency. Then we found a home that checked all their boxes, had recently reduced its price, and had been on the market for a few weeks. Timing worked in our favor. With no competing offers, the sellers were open to considering our terms. As part of our offer package, I included a full market analysis of my buyers’ current home to show pricing strategy and projected market performance, giving the sellers confidence in the contingency. The offer was accepted and from there, my buyers and I moved quickly to prepare their home for sale. Within a week, we completed light staging, minor touch-ups, and professional photography, then listed competitively to attract serious buyers. After just four days on the market, they received and accepted an offer that closed quickly in sixteen days, allowing my clients to move up the closing on their purchase and move into their dream home sooner!
In all three transactions, communication, preparation, and timing were everything. Whether representing the seller or buyer, staying proactive and informed made each of these home sale contingencies a success! A home sale contingency can be a powerful tool when used thoughtfully. Every transaction is different, which is why guidance, strategy, and experience matter. If you’re thinking about buying or selling here in Alexandria, I would love to be your local guide. My team, The Patterson Group of TTR Sotheby’s International Realty, is here to assist you through each step, answer your questions, and make the process seamless.
Contact me at Margaret@pattersonrealestategroup.com or call our office at 703-310-6201 to get started!
