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When you find the right house to purchase, you may wonder what you should do if you need to sell your house before you can buy the one you have found. If you need to sell first, your best option is to add a contingency to the offer you make on the house you wish to buy. The contingency would allow you to buy the house as long as your house sells within a certain time frame. If you use a contingency like this on your purchase offer, you should understand that the seller may add a kick-out clause to the deal.
What a kick-out clause is
Contingent house sales can be discouraging for sellers. While they are glad they have an offer, they may not want to wait a long time for the deal to go through. Because of this, a seller might agree to your contingency but may add a kick-out clause.
A kick-out clause gives the seller the option to sell the house to someone else during the contingency time period. This means that even if the seller agrees to sell you the house on contingency, there is a chance someone else might end up buying the house.
You will have options
Typically, when a kick-out clause is added to a deal, you will still have options. If another person makes an offer on this house, you will be notified immediately, and you will have a certain amount of time to drop your contingency.
This means that if you really want to buy this particular house but haven't yet sold yours, you could still buy it, but you would have to drop the contingency part of the deal. In other words, you would have to buy the house now and would no longer have time to wait for your house to sell.
Ways to avoid the seller adding this clause
If this house is your dream house and you do not want to miss the deal, you might be able to show the seller that you are really serious about buying the house by taking the following steps:
If you are ready to buy a house and would like to start viewing homes for sale, line up a visit with a real estate agency today.Share