What Is a Home Sale Contingency? (And How It Affects Your Sale in Sarnia)

 

If you're buying or selling a home in Sarnia, you might hear the term "home sale contingency." But what does it actually mean—and how could it affect your move? Let’s break it down in simple terms.

 

What Is a Home Sale Contingency?

 

A home sale contingency is a condition that’s often added to a real estate offer. It basically says: “I’ll buy your home—but only if I’m able to sell mine first.” This gives buyers a safety net. They’re not stuck owning two homes if their current one doesn’t sell.

 

 

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How It Works in Sarnia’s Market

 

In Sarnia, this type of contingency is more common in certain situations—especially when the market is balanced or slightly slower. Buyers who are upgrading or relocating locally might want to sell their current home before committing to a new one.

 

Here's an example: Let’s say Sarah wants to buy a new home in Bright’s Grove but hasn’t sold her current home in the Rapids Parkway area. She finds the perfect place and puts in an offer with a home sale contingency. The seller can accept, decline, or counter her offer.

 

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For Sellers: What You Need to Know

 

If you’re selling your home and get an offer with this type of condition, here are a few pros and cons:

 

✅ Pros

 

• You still have an offer—it could turn into a sale if the buyer’s home sells.
  
  
• You may have more negotiating power in other areas (like price or closing date).
  
  

 

❌ Cons

 

• Your home will be “conditionally sold,” which can make other buyers hesitant.
  
  
• The sale could fall through if the buyer’s home doesn’t sell on time.
  
  

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What’s a "48-Hour Escape Clause"?

 

This is something we often include to protect sellers. It means if another buyer comes along with a better offer, the first buyer has 48 hours (or another agreed time) to either remove their home sale condition—or walk away. This keeps things moving and gives sellers more flexibility.

 

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Is a Home Sale Contingency Right for You?

 

Whether you're buying, selling, or both—it depends on your situation and the current market conditions in Sarnia. A good real estate agent will guide you through the risks and benefits and help you decide what’s best for you.

 

Thinking of moving?

Whether you're upsizing, downsizing, or relocating within Sarnia-Lambton, our team is here to help you navigate every step—contingencies and all. Let's chat about your options!