If you have to sell your current home before you can buy the next one, your offer starts the race a few steps behind. You can fix that — and in a competitive Raleigh market, it often decides whether you get the house at all.
Here's how it usually goes. You find the house. You love it. You write a solid offer, maybe even at or above asking. Then your agent calls with the news: the sellers went with another buyer. Not because that buyer offered more money, but because their offer came without strings attached.
That string has a name. It's called a home sale contingency, and it's one of the fastest ways to lose a house you really wanted.
What a Home Sale Contingency Is (and Why Sellers Hate It)
A home sale contingency is a clause in your offer that says, in plain English: "I'll buy your house, but only if I can sell mine first." It gives you time to sell your current home before completing the purchase — protection against being forced to carry two mortgages at once (Lower).
That protection comes at a cost. Put yourself in the seller's shoes: when they accept your contingent offer, they're taking on your risk. Their closing date now depends on a stranger's buyer showing up. Your sale could come up short and unravel their deal. And if the contract falls apart, they go back on the market — and buyers browsing listings notice when a home flips from "pending" back to "active" and assume something is wrong with it (LRG Realty).
Sellers usually have their own next move planned, and most don't want it hanging on yours. So when a contingent offer sits next to a clean one, the clean one often wins even at a lower price.
What That Contingency Is Really Costing You
Most buyers treat the contingency as free insurance. It isn't. In a multiple-offer situation it usually costs you in one of three ways.
You lose the house. This is the most common outcome. Sellers don't reject contingent offers because they doubt your finances — they reject them because the closing timeline depends on a transaction they can't see or control. Faced with a clean offer, they take it, even if yours is technically stronger on price (Calque).
You pay more to compensate. Some buyers try to overcome the contingency by bidding well over asking. You're essentially paying extra for the privilege of being a riskier buyer.
You give up leverage. Even an accepted contingent offer often invites pushback on repairs, closing costs, or timelines. Sellers know you've already spent your goodwill just to get them to say yes.
There's also a quieter cost: settling. I've watched buyers pass on the home they actually wanted and take a less competitive one, simply because it was the only place that would accept a contingent offer.
Four Ways to Remove the Contingency
The good news: you have options. Here they are, from least to most powerful for most move-up and downsizing buyers.
1. Sell first, then buy
The simplest route. You list, sell, and shop with cash in hand. The downside is you may need temporary housing, storage, and two moves. Some buyers negotiate a short rent-back from their buyer to buy time, but that depends on the buyer agreeing.
2. Qualify for both mortgages at once
If your income can support your current payment and the new one together, you may be able to buy without selling first. This works for some higher-income households, but you still need cash for the down payment.
3. Tap equity with a HELOC before you list
A home equity line of credit can fund your down payment and close the gap between the two purchases. The catch is timing: it generally needs to be in place before your home goes on the market, and the payment typically counts against what you qualify for (Chase).
4. Use a bridge loan
This is the one most people haven't heard of. A bridge loan unlocks the equity in your current home so you can put it toward the new one before your home sells. You write a clean, non-contingent offer, move once, and sell your old home after you're out. When it sells, the bridge gets paid off (Chase).
For homeowners with solid equity and a sellable home, the bridge is usually the cleanest path. It lets you compete like a cash buyer without actually having the cash sitting in the bank.
The Bottom Line
A home sale contingency protects you, but in a competitive market it often costs you the house. If you have equity in your current home, you probably have more options than you think.
Before you write your next offer, let's talk. Send me your current address, a rough idea of what you owe, and what you're looking to buy. I'll tell you straight which of these four paths fits, including whether a bridge makes sense for you.
Michael Martin | Martin Mortgage Group at Fairway Home Mortgage | NMLS #131445
This Isn't Theory
Realtor Michael Terbet has closed at least four bridge loan purchases with me — clients who would have been writing contingent offers and instead walked in with clean ones. If you're working with an agent, ask whether they've used a bridge. If they haven't, send them my way.
1What if I don't have enough equity for a bridge loan?
Bridge lenders generally require meaningful equity in your current home to secure the loan against it. If you have less, a HELOC or a buy-before-you-sell program that stretches your timeline may fit instead — or you may need to qualify for both payments and sell first. Run your numbers with a lender before you commit to any one path.
2What happens if my current home doesn't sell before the bridge comes due?
Bridge loans are short-term by design, typically repaid within 6 to 12 months, so you're carrying two payments until the sale closes. If the sale drags past the term, most lenders expect you to refinance or sell quickly; a realistic list price and a pre-listing inspection reduce the odds of getting stuck.
3How do I find a lender in Raleigh who offers bridge loans?
Ask a lender or agent who has actually closed one. I've structured bridge purchases with Realtor Michael Terbet locally, so I can walk you and your agent through how it works and whether your situation qualifies before you write an offer.
No comments yet. Be the first to share your thoughts!