By Rebecca Sabot, Real Estate Agent
© Rebecca Sabot, All Rights Reserved
If you already own a home and need the equity from that sale to buy your next one, you may be wondering whether you should make your offer contingent on selling your current home first.
The honest answer? Sometimes yes. Sometimes absolutely not. It depends on your finances, the local market, your timeline, and how much risk you are comfortable carrying.
In the Bismarck-Mandan market, this is one of the most important strategy decisions move-up buyers make. A contingent offer can help protect you from ending up with two homes at once or scrambling financially, but it can also make your offer less attractive to a seller.
That does not mean it is a bad idea. It just means it needs to be used carefully and strategically.
WHAT DOES IT MEAN TO MAKE AN OFFER CONTINGENT ON SELLING YOUR HOME?
A sale contingency means your offer to purchase the next home depends on your current home selling by a certain date or under certain conditions.
In plain English: you are telling the seller, “I want to buy your home, but I need my current home to sell first.”
This type of contingency can protect you from taking on a second mortgage, draining savings, or buying before your equity is available.
For many homeowners, that protection is not just helpful. It is necessary.
WHY BUYERS USE A SALE CONTINGENCY
Most homeowners are not sitting on a giant pile of cash like a cartoon banker from 1987.
They often need money from their current home for the next down payment, closing costs, moving expenses, or all of the above.
A contingent offer can help if you:
need the equity from your current home to buy the next one
do not want to carry two house payments
want to reduce the risk of owning two homes at once
need more certainty before committing to the next purchase
are trying to avoid a rushed sale of your current home
For some buyers, it is the smartest and safest option available.
THE BIGGEST ADVANTAGE
The biggest advantage is protection.
If your current home does not sell, a sale contingency may allow you to step away from the purchase rather than being forced into a financial mess.
That can matter a lot if your current home is not yet listed, if the market is shifting, or if you are unsure how quickly your property will sell.
This is especially important for homeowners who bought years ago and may have a lot of equity but have not been through a real estate transaction in a long time. Selling and buying at the same time sounds simple until it becomes a real-life scheduling circus.
THE BIGGEST DOWNSIDE
The downside is simple: sellers usually prefer cleaner offers.
A seller comparing multiple offers may choose the one with fewer obstacles, fewer delays, and less uncertainty. A contingent offer adds another moving part to the transaction, because your deal depends on another buyer purchasing your current home.
That does not mean sellers will automatically reject it. But it does mean your offer may be weaker than:
a cash offer
a conventional offer with no home sale contingency
an offer from a buyer who is already under contract on their current home
an offer from a buyer who has already sold and closed
In a competitive market, that can matter a lot.
WHEN A CONTINGENT OFFER MAY MAKE SENSE
A sale contingency may make sense if your situation is strong enough to support it.
For example, you may be in a better position if:
your current home is already listed
your current home is priced well for the market
your home is in strong condition and likely to sell quickly
you are already under contract with a buyer
inventory is higher and sellers have fewer competing offers
the home you want has been sitting on the market longer
A contingent offer tends to work better when your own home sale looks realistic and close enough that the seller can believe it will actually happen.
The more uncertain your current sale is, the harder it can be to make this strategy work.
WHEN IT MAY NOT BE THE BEST IDEA
A sale contingency may not be your best move if:
your current home is not listed yet
you have not talked through pricing or prep work
homes are selling quickly and sellers have a lot of leverage
the home you want is brand new to the market
there are likely to be multiple offers
you have other financing options that would make your offer stronger
If the house you want is especially desirable, a contingent offer may put you at the back of the line fast.
That is the real issue here. It is not whether the contingency is fair. It is whether it helps you win.
OPTIONS BESIDES A SALE CONTINGENCY
Some buyers can avoid a sale contingency altogether by using a different strategy.
Depending on your finances, these options may be worth exploring:
1. SELL FIRST
This gives you the strongest buying position because you know exactly how much equity you have and you can make a cleaner offer.
The downside is obvious: you may need temporary housing if you do not find your next home in time.
2. BUY BEFORE YOU SELL
This can work if you have enough cash, qualify to carry both homes for a period of time, or have another source of funds for the down payment.
The upside is flexibility. The downside is risk.
3. USE A BRIDGE LOAN OR OTHER FINANCING TOOL
In some cases, a lender may offer financing that helps you access equity before your current home sells.
This is not right for everyone, but it can be a useful option in the right situation.
4. MAKE THE OFFER CONTINGENT ONLY AFTER YOUR HOME IS UNDER CONTRACT
This is often more attractive than making an offer when your current home is not even listed yet. Sellers usually feel more comfortable if your home already has a buyer.
5. NEGOTIATE A RENT-BACK OR EXTENDED CLOSING
If you sell first, you may be able to negotiate extra time in your current home after closing. That can help bridge the gap while you shop for the next one.
WHAT SELLERS ARE REALLY THINKING
When a seller sees a contingent offer, they are usually asking one question:
“How likely is it that this buyer’s home will actually sell and close?”
That means your current home matters a lot.
If your home is well-prepared, well-priced, and already getting activity, your contingent offer may feel much stronger.
If your home is overpriced, not listed, or likely to need work, the seller may see your offer as risky.
This is why strategy matters more than wishful thinking. Hope is not a transaction plan.
HOW TO MAKE A CONTINGENT OFFER STRONGER
If you do need to make an offer contingent on selling your home, there are ways to improve your odds.
You can strengthen the offer by:
listing your current home first
pricing it realistically from day one
completing key repairs and prep before going active
providing proof that your home is already on the market
showing that you are preapproved for the purchase
shortening contingency deadlines when possible
keeping the rest of your offer clean and straightforward
The more confidence you give the seller, the better.
A contingent offer is easier to accept when it feels like a real plan instead of a vague housing wish.
WHAT THIS LOOKS LIKE IN BISMARCK-MANDAN
In Bismarck-Mandan, whether a contingent offer makes sense can vary based on price point, inventory levels, seasonal activity, and how quickly your current home is likely to sell.
Some homes move fast and attract strong competition. Others sit longer and create more room for negotiation.
That is why there is no one-size-fits-all answer.
A homeowner in a highly desirable price range with a well-updated property may have more flexibility than a seller with a niche home or a property that needs work. Timing matters. Preparation matters. Pricing matters. Basically, all the glamorous stuff people wish they could skip matters most.
THE BOTTOM LINE
Yes, you can make an offer contingent on selling your home.
The better question is whether you should.
For some homeowners, it is the smartest way to protect their finances and reduce stress. For others, it may make their offer harder to win and create unnecessary complications.
The right move depends on your equity, your timing, the market, and how strong your current home is as a listing.
Before you start house hunting seriously, it helps to build a clear plan for both sides of the move: selling your current home and buying the next one.
