A sale-of-home contingency lets you make your purchase conditional on first selling your current home — useful for move-up buyers, but a contingency that sellers scrutinize closely.
Why buyers use a sale-of-home contingency
Many move-up buyers can’t comfortably carry two mortgages and need the equity from their current home to fund the down payment on the next one. A sale-of-home (also called sale-of-property) contingency ties the two together: if your existing home doesn’t sell (or close) within the agreed window, you can cancel the new purchase without breaching the contract. In California this is typically documented on the C.A.R. Contingency for Sale of Buyer’s Property (COP) form.
How sellers view it
From the seller’s side, a sale-of-home contingency introduces a chain of risk: their sale now depends on a home they don’t control selling on time. Sellers often respond by (1) discounting the offer’s attractiveness compared with a non-contingent buyer, (2) asking that the buyer’s home already be listed (or in escrow), or (3) accepting the contingency only with a bump clause. In a strong seller’s market, a sale-of-home contingency can make an offer noticeably less competitive.
The bump clause
A bump clause (right to continue to market / right to accept another offer) lets the seller keep their home on the market after accepting your contingent offer. If the seller receives another acceptable offer, they can ‘bump’ you — giving you a short, defined window (for example, a set number of hours or days specified in the contract) to remove the sale-of-home contingency and proceed, or to step aside so the seller can take the new offer. It’s a way for sellers to say yes to a contingent buyer without fully taking the home off the market.
Structuring a stronger contingent offer
To make a sale-of-home offer more palatable: list (or get into escrow on) your current home first; show the seller a realistic timeline; keep the contingency window tight; and consider whether bridge financing or a buy-before-you-sell program could let you drop the contingency altogether. The more certainty you can give the seller about your sale, the less the contingency will cost you in price or terms.
Coordinating two escrows
When both transactions are live, the timelines have to mesh: your sale’s closing needs to fund your purchase, and the contingency periods on both deals (inspection, appraisal, loan) overlap. This is where an experienced agent earns their keep — sequencing removals, managing both sets of deadlines, and keeping the chain from breaking. Confirm every date in writing on both contracts.
Disclaimer
Brian Cooper is a licensed California REALTOR® with eXp Realty — not an attorney. This page is general information about common California real-estate practice under the C.A.R. Residential Purchase Agreement (RPA); it is not legal advice and does not create an agent-client relationship. Contract defaults can be changed by negotiation, the C.A.R. forms are revised periodically, and your transaction may differ. Always confirm the current C.A.R. forms and the exact terms written into your contract, and for any dispute — especially over a deposit — consult a qualified California real estate attorney.
Frequently Asked Questions
What is a sale-of-home contingency?
A condition that makes your new purchase dependent on first selling (or closing) your current home, documented in California on the C.A.R. Contingency for Sale of Buyer’s Property (COP) form. If your home doesn’t sell in time, you can cancel without breaching.
Do sellers accept sale-of-home contingencies?
Sometimes — but they view them as riskier than non-contingent offers, especially in a seller’s market. Many will only accept with a bump clause or if your home is already listed or in escrow.
What is a bump clause?
A provision letting the seller keep marketing the home after accepting your contingent offer. If a better offer arrives, the seller can ‘bump’ you, giving you a short window to remove the sale-of-home contingency or step aside.
How can I make a contingent offer more competitive?
List or get into escrow on your current home first, keep the contingency window tight, show a realistic timeline, and consider bridge financing or a buy-before-you-sell program so you may be able to drop the contingency entirely.
Can I get my deposit back if my home doesn't sell?
Generally yes, if the sale-of-home contingency is still active and your home genuinely didn’t sell within the agreed period. Confirm the exact terms in your contract — details matter.
Does Brian help with buy-and-sell-at-once moves?
Yes — coordinating a simultaneous sale and purchase, including contingency sequencing and bridge options, is exactly the kind of move the team handles. Reach out via the contact page.
