Overcoming the challenges of buying with a home sale contingency

In a hot, low-inventory market, buying and selling at the same time can feel like trying to change planes mid-air. The show dives into the realities of making an offer contingent on the sale of your current home, why sellers often balk, how South Carolina contracts actually handle it, and the practical ways buyers can still win without overexposing themselves to risk.

Challenges of Buying with a Home Sale Contingency 

A home sale contingency in South Carolina’s standard forms simply means the purchase of the next home depends on the successful sale of the current one. If that sale doesn’t happen, the buyer can be released and recover earnest money. Straightforward on paper—trickier in practice—because in a seller’s market, sellers want the cleanest possible path to closing.

Why sellers resist contingencies in a seller’s market

When multiple buyers circle the same property, sellers compare risk. A buyer who must sell first introduces moving parts the seller cannot control—another listing, another negotiation, another appraisal and inspection, and sometimes another set of agents, lenders, and timelines. If that upstream deal wobbles, everyone downstream feels it. So while contingencies are legitimate, they are often viewed as the least competitive option when simpler offers exist.

The difficulty spectrum: where your contingency sits matters

Not all sale-to-buy scenarios are equal. The conversation outlines a practical spectrumthat sellers and listing agents use to gauge risk.

1) Hardest: contingent—and the current home isn’t even listed

Most sellers won’t consider it. Listing agents will ask for specifics (address, list price, photos, timing) and often conclude the risk is too high when nothing is on the market yet.

2) Still tough: listed, but not under contract

Now the questions get sharper: How long has it been listed? Are showings strong? Is pricing in line with comps? Is the condition holding it back? If the listing appears overpriced, listing agents may even signal: “Drop the price by X to make your purchase offer worth discussing.”

3) Better: already under contract

This is the strongest version of a home sale contingency. Even then, good listing agents will probe: Has the inspection window closed? Has the appraisal been completed? What’s the closing date? The firmer the upstream contract, the more credible the downstream offer.

4) Special complication: out-of-state sales

Sales in attorney-driven states with additional steps and parties can add friction and uncertainty for South Carolina closings. Local sellers and agents often prefer a contingency tied to a nearby sale they can evaluate more easily.

How South Carolina sellers protect themselves: First Right of Refusal (SCR Form 504)

A powerful tool in these scenarios is SCR Form 504, which builds a first right of refusal into the primary contract. Here’s how it typically functions:

• The seller accepts a primary offer with a home sale contingency and the 504 addendum.

• If a non-contingent backup offer the seller likes arrives, the clock starts.

• The primary buyer usually has 48 or 72 hours (terms vary) to:

• Get their current home under contract, or

• Prove they can proceed without the sale contingency (and accept the financial risk), or

• Release the contract, allowing the backup to move into the primary position.

This structure gives sellers leverage and a way to avoid being stuck for weeks. It also means buyers who rely on a contingency must be ready to sprint when that notice hits.

Why using one agent for both your sale and purchase helps

Coordinating two transactions with different agents (even within the same office) can create conflicting strategies, uneven urgency, and slower communication. A single agent quarterbacking both the sale and purchase aligns pricing, timelines, and negotiation posture—especially vital when a Form 504 clock is ticking or when both sides need to line up same-day closings.

How buyers can strengthen a contingent offer

List early—and list right.Before touring the “next” home, have the current home truly ready: measurements, professional photos, staging guidance, and pricing that reflects the market. In this climate, a standard, well-kept, properly priced home should attract quick attention; if it lingers, the market is sending a message on price or condition.

Explain the path to sold.A good buyer’s agent will proactively brief the listing agent for the home you want: why the current home will sell (timing, comps, showing volume), what’s already done (repairs, prep), and what’s next (open houses, marketing steps). The job is to reduce uncertainty.

Accept the 504 reality—and prep for it.If the seller insists on SCR 504, be poised for a 48–72 hour scramble: price adjustments, marketing pushes, or contract acceptance on your sale to keep your purchase alive.

Mind the numbers if you skip the contingency.If you’re financially able, one workaround is to remove the home sale contingency, write a reasonable (often 30–45 day) closing, then sprint to sell your home and align closings. This raises the odds of acceptance—but exposes you to a period with two mortgages if timing slips. Only choose this if you can genuinely absorb the overlap risk.

How sellers should evaluate contingent offers

Ask the right questions. Address, list price, days on market, showing velocity, condition and presentation, and—if under contract—the status of inspections, appraisal, and loan. If the upstream sale is out of state, expect extra diligence.

Use Form 504 wisely. If a contingency is the best offer on the table, 504 can be the safeguard that keeps timelines honest and the listing alive for better-positioned buyers.

Weigh more than price. The cleanest deal often wins in seller’s markets. Purchase price, yes—but also contingency count, timeline, and the proven competence of the other side’s agent.

Tactical tips for making two closings play nicely

• Front-load prep. Get photos, measurements, and staging advice before you shop.

• Sequence smartly. If you must go non-contingent, align the sale’s target close date with the purchase’s close date (same day if possible) to limit gap risk.

• Be candid about unique properties. Highly specialized or luxury homes may not sync easily; allow extra time or rethink the contingency structure.

What “overcoming the challenges of buying with a home sale contingency” really looks like

It’s not magic; it’s mechanics: honest pricing on the sale, crisp presentation, a persuasive narrative to the listing agent on the purchase, and contract tools that keep everyone moving. When those pieces click, buyers with contingencies can and do win—even in a market tilted toward sellers.

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Bottom Line

Overcoming the challenges of buying with a home sale contingency is about credibility and control. Sellers want fewer variables; buyers must show how their sale becomes one of the “easy” ones—priced right, prepared, and positioned to go under contract fast. SCR Form 504 protects sellers while giving contingent buyers a fair shot. For buyers with the means, removing the contingency and racing to align closings is a viable—but risk-bearing—alternative. With one aligned agent running point, clear timelines, and realistic pricing, contingent buyers can still capture the home they want without derailing the plan.

Ien Araneta

Journal & Podcast Editor | Selling Greenville