Can I Make a Non-Contingent Offer Without Selling First?
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
You’ve found a new home, but your purchase offer contains a home sale contingency; you can’t afford to buy it unless your current house sells. This clause weakens your offer, and now you’re afraid someone else will win the home. But can you make a non-contingent offer without selling first?
While making a non-contingent offer without selling your current home is possible, it’s a strategy often fraught with financial risks. An offer with no contingencies can make you a more competitive buyer, but it exposes you to the potential burden of owning two homes at once.
Fortunately, innovative programs like HomeLight’s Buy Before You Sell provide a secure path to making a strong, non-contingent offer by eliminating the need to juggle two mortgages or rush through a stressful home sale.
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
Can you really make a non-contingent offer without selling your current home?
Yes, it is possible to make a non-contingent offer on a new home even if your current home hasn’t sold yet. This approach removes the home sale contingency from your offer, which signals to the seller that the purchase is not dependent on your ability to sell your existing property.
This is a common strategy used in competitive real estate markets to make an offer more attractive to sellers. A non-contingent offer tells a seller that your transaction is less likely to fall through, potentially giving you an edge over other interested parties.
However, the potential financial and logistical pitfalls are serious and require careful consideration before you commit. To address these challenges, HomeLight offers a modern solution specifically designed to mitigate the risks associated with buying and selling at the same time. First, let’s look at the contingencies you might be dealing with.
What is a non-contingent offer in real estate?
A non-contingent offer is a purchase agreement that is not dependent on specific conditions being met for the sale to proceed. These conditions, or contingencies, are clauses in a real estate contract that protect the buyer. Common contingencies include the successful sale of the buyer’s current home, a satisfactory home inspection, the property appraising at or above the sale price, and the buyer securing financing.
Waiving one or more of these contingencies signals to sellers that you are a serious, well-prepared buyer and that the transaction is more likely to close without delays or complications. In a market with multiple offers, a non-contingent offer can be a powerful tool to make your bid stand out. Sellers often favor these offers because they represent a smoother and more certain path to closing.
The most common contingency buyers consider waiving is the home sale contingency. This clause explicitly states that the purchase of the new home is conditional upon the successful sale of the buyer’s current property. By removing it, you are legally committing to buy the new home regardless of whether your current one sells in time, or at all.
Why making a non-contingent offer without selling first is risky
Making a non-contingent offer without a guaranteed plan for selling your current home is a high-stakes financial gamble. The primary risk is the immense financial burden of owning two homes simultaneously. This includes managing:
- Two separate mortgage payments
- Two sets of property tax bills
- Two home insurance policies
- Utility and maintenance costs for both properties
These double expenses can drain your savings rapidly and cause considerable financial stress.
If your current home doesn’t sell as quickly as you anticipated, the pressure mounts. You may be forced to make hefty price reductions to attract a buyer, which can impact your net proceeds — and affect your long-term financial plans. Furthermore, you risk losing your earnest money deposit if you can’t close on the new home.
Another significant risk involves waiving the inspection contingency, which often accompanies non-contingent offers to make them even more attractive. By doing so, you agree to purchase the property “as is,” forfeiting your right to back out or renegotiate based on inspection findings. This means you could inherit costly, unforeseen repairs for issues like a faulty roof, foundation problems, or outdated electrical systems.
What financial readiness means when making a non-contingent offer
Financial readiness means being able to clearly and quickly show that you can close without delays or surprises. Before moving forward, make sure these pieces are in place:
- Secure a full mortgage pre-approval: A lender-reviewed pre-approval (not a pre-qualification) shows sellers you’re highly likely to secure financing. Most letters are valid for 60 to 90 days.
- Provide proof of funds: Be ready to document cash for your down payment and closing costs using recent bank statements, brokerage statements, or a letter from your financial institution.
- Understand earnest money risk: Earnest money typically runs 1% to 3% of the purchase price and may be higher in competitive markets. With a non-contingent offer, that deposit is more vulnerable if the deal falls through.
- Consider a pre-offer inspection: Inspecting the home before submitting your offer can reduce the risk of waiving an inspection contingency and help you move forward with clearer expectations.
- Maintain a financial buffer: Extra savings can help cover surprise repairs, closing adjustments, or short-term overlap costs if you briefly carry two homes.
How HomeLight’s Buy Before You Sell Program empowers you to make a strong, non-contingent offer
HomeLight’s Buy Before You Sell program provides a modern and secure solution for buyers who need to purchase a new home before selling their current one, allowing you to make a non-contingent offer with confidence.
This program seamlessly unlocks the equity in your current home, streamlining the entire process so that you can make a non-contingent offer on your new home and only move once.
Here’s how HomeLight Buy Before You Sell works:
This financial backing eliminates the need for a home sale contingency, positioning you as a strong and competitive buyer.
Once you’ve moved out, your previous home can be prepared for the market without the disruption of daily life. A vacant home is easier to stage and show, which can lead to a quicker sale at a potentially higher price. This transforms a traditionally risky non-contingent offer into a secure and strategic move.
In addition, you’ll have more peace of mind with HomeLight’s Home Sale Guarantee, a backup cash offer for your old house, providing a safety net if it doesn’t sell quickly on the open market.
As you can see, HomeLight’s Buy Before You Sell program is engineered to remove many of the risks and uncertainties that come with juggling two real estate transactions at once.
Improve your plans with a Home Affordability Calculator
To help you gain some perspective on your next move, try our Home Affordability Calculator below. Consider how much you might be able to reduce the monthly mortgage payment on your new house if you could increase the down payment with funds from your current home’s equity.
The toggle feature lets you calculate by income or by payment. If you click the “Advanced Options” link, you can fine-tune the details, like your property taxes, PMI, or insurance costs. The calculator will automatically include some typical expenses to help you see how much house you can afford.
More tools from HomeLight to help you plan your next move:
Put the ‘offer odds’ in your favor with HomeLight
Whether you decide to use a buy-before-you-sell program or take a more traditional route, you’ll get the best results when you partner with a top professional. HomeLight’s free Agent Match platform analyzes nearly 30 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
Whether you’re buying, selling, or both, an experienced agent can provide a detailed analysis of local market signals. Your agent will also take the time to understand your personal financial situation and risk tolerance.
Ready to explore your options for making a strong offer? Start here to connect with a top HomeLight agent today, or visit homelight.com/buy-before-you-sell to discover how Buy Before You Sell can help you make a strong, non-contingent offer on your next home.
Header Image Sources: (spiroview/Deposit photos and Fer Troulik/Unsplash)
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