{"id":2192,"date":"2026-02-17T13:48:46","date_gmt":"2026-02-17T13:48:46","guid":{"rendered":"https:\/\/lrgrealty.com\/home-sale-contingency-texas-move-up-plan\/"},"modified":"2026-05-28T14:55:54","modified_gmt":"2026-05-28T14:55:54","slug":"home-sale-contingency-texas-move-up-plan","status":"publish","type":"post","link":"https:\/\/lrgrealty.com\/lrg-blog\/home-sale-contingency-texas-move-up-plan\/","title":{"rendered":"Home Sale Contingency in Texas: Make Your Offer Strong"},"content":{"rendered":"<div class=\"rl-page rl-page-lrg\">\n<div class=\"rl-wrap\">\n<header class=\"rl-hero\">\n<div class=\"rl-eyebrow\">Process \u00b7 Guide<\/div>\n<h1>Home Sale Contingency Texas Move Up Plan<\/h1>\n<p><a class=\"rl-cta-primary\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=home-sale-contingency-texas-move-up-plan\">Connect with LRG \u2192<\/a><br \/>\n<\/header>\n<nav aria-label=\"Jump to section\" class=\"rl-jump-nav\">\n<a href=\"#why-sellers-get-nervous-about-contingent-offers\">Why Sellers Get Nervous About Contingent Offers<\/a><br \/>\n<a href=\"#seven-ways-to-make-your-contingent-offer-stronger\">Seven Ways to Make Your Contingent Offer Stronger<\/a><br \/>\n<a href=\"#what-happens-between-contract-and-closing-in-texas\">What Happens Between Contract and Closing in Texas?<\/a><br \/>\n<a href=\"#can-the-seller-back-out-after-option-period\">Can the Seller Back Out After Option Period?<\/a><br \/>\n<a href=\"#faqs\">FAQs<\/a><br \/>\n<\/nav>\n<p>A home sale contingency protects Texas move-up buyers if their current home doesn&#8217;t sell, but it weakens your offer in nearly every competitive situation. Sellers receiving multiple bids almost always reject the contingent one first, and in metros like Dallas-Fort Worth and San Antonio, average days on market sit below 40 for move-up price points. Bridge loans, lease-release programs, and buy-before-you-sell services offer cleaner alternatives, though each adds fees typically running 1.5% to 3% of your current home&#8217;s value.<\/p>\n<div class=\"rl-quick-grid\">\n<article class=\"rl-quick-card\">\n<h3>Before You Submit a Contingent Offer<\/h3>\n<ul>\n<li><strong>Pre-approval letter:<\/strong> Your lender must confirm you can carry two mortgages simultaneously. Get a letter that accounts for both your current payment and the new loan amount.<\/li>\n<li><strong>Debt-to-income check:<\/strong> Run your DTI with both mortgage payments included. Most Texas lenders cap DTI at 43% to 50%, and exceeding that threshold kills contingent offers before they start.<\/li>\n<li><strong>Kick-out clause risk:<\/strong> Texas sellers commonly add a 72-hour kick-out clause, letting them accept a backup offer and force you to waive the contingency or walk within three days.<\/li>\n<li><strong>Bottom line:<\/strong> Contingent offers in Texas close at roughly half the rate of clean offers. A bridge loan or HELOC as backup turns a weak position into a competitive one.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>What You Need for a Texas Move-Up Plan<\/h3>\n<ul>\n<li><strong>Must have:<\/strong> A signed listing agreement or active MLS listing on your current home before submitting any contingent offer to a Texas seller.<\/li>\n<li><strong>Strongly recommended:<\/strong> Pre-approval for bridge financing or a HELOC so you can drop the contingency and compete with clean offers if needed.<\/li>\n<li><strong>Optional but helpful:<\/strong> A pre-listing inspection on your current home, which removes one variable and can shorten your sell-side timeline by two to three weeks.<\/li>\n<li><strong>Bottom line:<\/strong> Texas contracts use TREC&#8217;s Addendum for Sale of Other Property, giving sellers a 72-hour kick-out right. Have backup funds ready within that window or risk losing the deal.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>Move-Up Contingency Timeline<\/h3>\n<ul>\n<li><strong>Pre-list first:<\/strong> Get your current home on MLS before submitting a contingent offer. Sellers discount buyers whose existing property is not yet actively marketed.<\/li>\n<li><strong>Dual contract phase:<\/strong> Once both homes are under contract, run inspections, appraisals, and title work on parallel tracks to stay ahead of the seller&#8217;s kick-out window.<\/li>\n<li><strong>Same-day closing:<\/strong> Texas title companies can coordinate back-to-back closings, routing sale proceeds from your current home directly into the new purchase without a gap in funding.<\/li>\n<li><strong>Typical timeline:<\/strong> Plan for 45 to 75 days from listing your current home to closing on both properties. Buyer financing delays on your existing home cause the most slippage.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>What a Texas Move-Up Contingency Costs<\/h3>\n<ul>\n<li><strong>Bridge loan fees:<\/strong> Origination runs 1.5% to 3% of the loan amount, plus 8% to 10% annual interest while you carry two properties.<\/li>\n<li><strong>Dual mortgage overlap:<\/strong> Budget $3,000 to $6,000 per month for two mortgage payments, dual insurance, property taxes, and utilities on both homes.<\/li>\n<li><strong>Lease-back savings:<\/strong> Negotiating a post-close lease-back from your buyer cuts overlap to under two weeks and saves $2,000 to $4,000 in carrying costs.<\/li>\n<li><strong>Break-even:<\/strong> On a $400,000 move-up purchase, bridge financing adds roughly $8,000 to $14,000 total. That pays for itself if avoiding a rushed sale saves you even 2% on your current home&#8217;s price.<\/li>\n<\/ul>\n<\/article>\n<\/div>\n<details>\n<summary>How does a contingency offer work in Texas?<\/summary>\n<p>A home sale contingency lets you make an offer on a new property with a clause that the purchase only moves forward once your current home sells. Texas sellers can accept your offer but typically set a kick-out clause, giving them the right to take a better offer if yours doesn&#8217;t close within a specified window.<\/p>\n<\/details>\n<details>\n<summary>Can sellers back out after OTP?<\/summary>\n<p>In Texas, sellers can back out during the option period only if the contract includes specific termination rights. Once the option period expires and all contingencies are met or waived, the seller is bound by the executed contract. Buyers should push for short option periods to reduce this risk.<\/p>\n<\/details>\n<details>\n<summary>Are home sale contingencies bad?<\/summary>\n<p>Not inherently, but in competitive Texas markets they weaken your offer. Sellers often pass on contingent buyers because closing depends on a second transaction. A move-up plan that uses bridge financing or a lease-release program removes that contingency and keeps your offer competitive against non-contingent buyers.<\/p>\n<\/details>\n<section class=\"rl-bluf\">\n<h2 id=\"the-bottom-line-up-front\">The Bottom Line Up Front<\/h2>\n<p><strong>A home sale contingency protects you from owning two mortgages at once, but in competitive Texas markets it can cost you the house you want. Move-up buyers need to understand their current home&#8217;s realistic sale timeline, know exactly what the TREC Addendum for Sale of Other Property commits them to, and have a fallback plan ready when the seller sends a 72-hour kick-out notice.<\/strong><\/p>\n<p>In Texas, the TREC Addendum for Sale of Other Property gives the seller the right to continue marketing and accept backup offers. If another buyer steps up, the seller issues a notice (typically 72 hours) for you to waive the contingency or walk. Statewide, homes average 45 to 55 days on market depending on the metro, so your contingency window matters. Alternatives include bridge loans (typically 8-10% interest), home equity lines, or lease-back arrangements where you sell first and rent your old home short-term while closing on the new one.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>Texas sellers can kick your contingency with a 72-hour notice if a backup offer arrives.<\/li>\n<li>Bridge loans run 8-10% interest and require at least 20% equity in your current home.<\/li>\n<li>Listing your current home before making a contingent offer strengthens your position with sellers.<\/li>\n<li>Lease-back agreements let you sell first, then rent your old home for 30 to 60 days.<\/li>\n<li>The TREC addendum controls your contingency terms, so read every clause before signing.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"why-sellers-get-nervous-about-contingent-offers\">Why Sellers Get Nervous About Contingent Offers<\/h2>\n<p>Sellers view contingent offers as risky because the deal hinges on something outside their control: whether your current home sells. In a Texas market where well-priced listings still draw multiple offers within days, a seller sitting on a contingent contract watches other buyers walk past. That uncertainty costs them time, leverage, and potentially money if the deal falls through weeks into the process.<\/p>\n<p>The concern is rational. A contingent offer introduces a second transaction into what the seller hoped would be a single, clean closing. If your home doesn&#8217;t sell on schedule, the seller faces re-listing their property after it sat under contract, often at a psychological disadvantage. Buyers browsing MLS notice when a listing flips from &#8220;pending&#8221; back to &#8220;active,&#8221; and many assume something is wrong with the house. Sellers know this, and their agents remind them of it during offer review.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>Timeline risk: <a href=\"https:\/\/lrgrealty.com\/empty-nester\/2022-9-17-tips-for-empty-nesters-on-downsizing\/\">your home could<\/a> take 30, 60, or 90+ days to sell, keeping the seller locked in place with no guaranteed close date<\/li>\n<li>Appraisal and inspection exposure on two properties instead of one, doubling the chances something derails the transaction<\/li>\n<li>Kick-out clause pressure: even with a 72-hour kick-out, sellers dislike the administrative burden of continuing to show their home and evaluate backup offers<\/li>\n<li>Carrying costs add up: if the seller already purchased their next home or is paying on a bridge loan, every extra week on market costs real money in mortgage payments, insurance, and taxes<\/li>\n<li>Perception problem: listing agents coaching their sellers often frame contingent offers as &#8220;last resort&#8221; options, especially when a non-contingent offer sits on the table at a similar price<\/li>\n<\/ul>\n<\/div>\n<p>This is exactly why move-up buyers in Texas need a plan beyond just submitting an offer with a home-sale contingency attached. Understanding what makes sellers hesitate gives you room to structure terms that offset their concerns, whether that means a larger earnest money deposit, a shorter contingency window, or removing the contingency entirely with a lease-back or bridge financing strategy.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"seven-ways-to-make-your-contingent-offer-stronger\">Seven Ways to Make Your Contingent Offer Stronger<\/h2>\n<p>A contingent offer doesn&#8217;t have to be a weak offer. Sellers in Texas accept contingent deals regularly when the buyer structures the terms to minimize the seller&#8217;s exposure. The key is proving your home will sell on a predictable timeline and that you won&#8217;t leave the seller in limbo for 90 days. These seven strategies shift the risk equation and keep your offer competitive against cleaner bids.<\/p>\n<p>Each strategy targets a specific concern sellers have about contingent deals. Some cost money upfront, others just require preparation before your agent writes the offer. The strongest contingent packages layer three or four of these into a single proposal that shrinks the seller&#8217;s total risk. Individually, any one of these helps. Combined, they can outperform a non-contingent offer that undercuts the asking price by $10,000 or more.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>Pre-list your current home before making the offer. An active listing with showings scheduled tells sellers your contingency has a short timeline, not an open-ended one.<\/li>\n<li>Add a kick-out clause with a 72-hour response window so the seller can keep marketing their home and accept backup offers while you work to close on yours.<\/li>\n<li>Shorten the contingency period to 30 days or less. In most Texas metros with tight inventory, a correctly priced home sells within that window.<\/li>\n<li>Increase earnest money to 2% or 3% of the purchase price instead of the typical 1%. Doubling the deposit signals you&#8217;re serious about closing.<\/li>\n<li>Make a portion of earnest money non-refundable after a milestone, like $5,000 going hard after 14 days. Sellers notice when buyers put real dollars at risk.<\/li>\n<li>Submit a fully underwritten pre-approval letter, not a basic pre-qualification. This removes financing uncertainty from the seller&#8217;s risk calculation entirely.<\/li>\n<li>Price at or above list. A contingent offer at asking frequently beats a clean offer that comes in $15,000 below because sellers run the net-proceeds math fast.<\/li>\n<\/ul>\n<\/div>\n<p>A move-up buyer in the DFW market recently stacked a pre-listed home, 72-hour kick-out clause, and 2.5% earnest money deposit on a $425,000 purchase. The seller accepted that package over a non-contingent bid priced $18,000 below list. The contingency didn&#8217;t matter because every piece of the offer addressed a specific risk. Structure wins when the math favors the seller.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"what-happens-between-contract-and-closing-in-texas\">What Happens Between Contract and Closing in Texas?<\/h2>\n<p>A standard Texas contract-to-closing timeline runs 30 to 45 days, but adding a home sale contingency introduces extra milestones that can push that window longer. Once both parties execute the contract, the option period, inspections, appraisal, and lender underwriting all run on overlapping tracks. For move-up buyers with a contingency, the sale of your current home becomes another critical piece layered on top of these standard deadlines.<\/p>\n<p>Texas uses the TREC One to Four Family Residential Contract, which builds in specific deadlines for each phase. Your option period (usually 7 to 10 days) gives you an unrestricted right to terminate for any reason. During that same window, your lender orders the appraisal and begins underwriting on the new purchase. If your current home is already under contract, the buyer&#8217;s lender is running a parallel timeline on that side too. Managing both closings means tracking two sets of deadlines, two title companies, and coordinating a settlement date that works for all parties.<\/p>\n<table>\n<thead>\n<tr>\n<th>Phase<\/th>\n<th>Typical Timeline<\/th>\n<th>Key Action for Contingent Buyers<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Executed contract<\/td>\n<td>Day 0<\/td>\n<td>Earnest money deposited (usually 1% of purchase price)<\/td>\n<\/tr>\n<tr>\n<td>Option period<\/td>\n<td>Days 1\u20137<\/td>\n<td>Inspections completed; negotiate repairs or terminate<\/td>\n<\/tr>\n<tr>\n<td>Appraisal ordered<\/td>\n<td>Days 3\u20137<\/td>\n<td>Lender orders appraisal on new home<\/td>\n<\/tr>\n<tr>\n<td>Contingency deadline<\/td>\n<td>Days 14\u201321<\/td>\n<td>Current home must be under contract or seller can invoke kick-out clause<\/td>\n<\/tr>\n<tr>\n<td>Title commitment<\/td>\n<td>Days 10\u201320<\/td>\n<td>Title company clears title, resolves liens<\/td>\n<\/tr>\n<tr>\n<td>Underwriting approval<\/td>\n<td>Days 14\u201330<\/td>\n<td>Lender verifies income, assets, and sale proceeds from current home<\/td>\n<\/tr>\n<tr>\n<td>Final walkthrough<\/td>\n<td>Days 28\u201340<\/td>\n<td>Confirm repairs completed, verify property condition<\/td>\n<\/tr>\n<tr>\n<td>Closing<\/td>\n<td>Days 30\u201345<\/td>\n<td>Sign documents, fund the loan, record the deed<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>If your current home hasn&#8217;t closed before the new purchase&#8217;s funding deadline, the deal stalls. That&#8217;s why the strategies covered earlier (competitive pricing, pre-listing prep, short contingency windows) directly affect whether you clear each milestone on schedule. Pricing your current home to go under contract within the first two weeks of listing gives you the best shot at keeping both transactions on track. A 45-day close on the new home paired with a 30-day close on the current one is the typical target.<\/p>\n<\/section>\n<div class=\"rl-cta-mid\"><a class=\"rl-cta-pill\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=home-sale-contingency-texas-move-up-plan\">Connect with LRG \u2192<\/a><\/div>\n<section class=\"rl-section\">\n<h2 id=\"can-the-seller-back-out-after-option-period\">Can the Seller Back Out After Option Period?<\/h2>\n<p>Generally, no. Once the option period ends and both parties are under an executed contract, the seller cannot simply walk away because they received a better offer or changed their mind. Texas law treats real estate contracts as binding obligations. A seller who refuses to close without legal grounds faces a breach of contract claim, and the buyer can pursue specific performance to force the sale through court.<\/p>\n<p>That said, a home sale contingency actually gives the seller more leverage than a standard contract. Most Texas contingency addenda include a kick-out clause (TREC Addendum for Sale of Other Property) that lets the seller keep marketing the home. If a non-contingent offer comes in, the seller delivers written notice, and the original buyer typically has 72 hours to waive the contingency or lose the contract. This is not the seller &#8220;backing out.&#8221; It is the contract working exactly as written.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>After option period, the seller can only terminate for causes specified in the contract, such as the buyer failing to meet a financing deadline or missing a contingency removal date.<\/li>\n<li>The kick-out clause in TREC&#8217;s sale-of-other-property addendum is the seller&#8217;s primary protection against being locked into a contingent deal indefinitely.<\/li>\n<li>If the buyer&#8217;s home does not sell by the agreed date, the seller can terminate without penalty because the contingency was never satisfied.<\/li>\n<li>A seller who backs out without contractual cause risks forfeiting the earnest money dispute and paying the buyer&#8217;s damages, including inspection costs and temporary housing expenses.<\/li>\n<li>Specific performance lawsuits in Texas can take 12 to 18 months and cost $15,000 or more in legal fees, which discourages frivolous terminations on both sides.<\/li>\n<\/ul>\n<\/div>\n<p>If you are the contingent buyer, understanding this dynamic works in your favor. The seller is contractually committed once the option period closes. Your real risk is not the seller walking away voluntarily. It is failing to sell your current <a href=\"https:\/\/lrgrealty.com\/lrg-blog\/home-for-the-holidays-finding-your-perfect-san-antonio-home-before-the-new-year\/\">home before the<\/a> contingency deadline, which hands the seller a legitimate exit. Structure your timeline so your listing hits the market before you execute the purchase contract, and you reduce that exposure significantly.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"do-home-sale-contingencies-actually-kill-deals\">Do Home Sale Contingencies Actually Kill Deals?<\/h2>\n<p>Most contingent deals in Texas close successfully. National data from NAR shows roughly 5% to 6% of contracts fall through in any given month, and home sale contingencies account for only a fraction of those failures. The bigger deal-killers are financing issues, inspection problems, and appraisal gaps. A well-structured contingent offer with realistic timelines rarely torpedoes a transaction on its own.<\/p>\n<p>What <a href=\"https:\/\/lrgrealty.com\/agents\/\">matters more than<\/a> the contingency itself is how the buyer&#8217;s existing home is positioned. A contingent offer tied to a listed property with showings and activity reads differently to a seller than one tied to a home that has not hit the market yet. Sellers and their agents look at the underlying risk, not just the contingency checkbox on the TREC form. Prior sections covered specific ways to strengthen that positioning, so the real question is how contingency-related failures stack up against other causes.<\/p>\n<table>\n<thead>\n<tr>\n<th>Reason Deal Falls Through<\/th>\n<th>Approximate Share of Failed Contracts<\/th>\n<th>Preventable by Buyer?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Financing denied or delayed<\/td>\n<td>35%\u201340%<\/td>\n<td>Mostly (get pre-underwritten)<\/td>\n<\/tr>\n<tr>\n<td>Inspection issues unresolved<\/td>\n<td>15%\u201320%<\/td>\n<td>Partially (negotiate or waive repairs)<\/td>\n<\/tr>\n<tr>\n<td>Appraisal gap<\/td>\n<td>10%\u201315%<\/td>\n<td>Partially (gap coverage clause)<\/td>\n<\/tr>\n<tr>\n<td>Home sale contingency not met<\/td>\n<td>8%\u201312%<\/td>\n<td>Yes (list early, price correctly)<\/td>\n<\/tr>\n<tr>\n<td>Title or survey problems<\/td>\n<td>5%\u20138%<\/td>\n<td>Rarely<\/td>\n<\/tr>\n<tr>\n<td>Buyer cold feet or life change<\/td>\n<td>5%\u201310%<\/td>\n<td>No<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In the DFW and Austin corridors where inventory has loosened through 2025 and into 2026, sellers accept contingent offers more often than they did during the 2021 frenzy. If your current home is priced at market, listed before you write the offer, and sitting in a ZIP code with under 60 days of inventory, the contingency adds a manageable layer of risk rather than a fatal one. The deals that actually die usually have a financing or inspection problem hiding underneath.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"mapping-out-your-texas-move-up-timeline\">Mapping Out Your Texas Move-Up Timeline<\/h2>\n<p>A solid move-up timeline in Texas typically runs 90 to 120 days from first prep step to closing day. That window accounts for listing your current home, shopping for the next one, and building in enough contingency buffer so you&#8217;re not rushing into concessions. Working backward from your target move date keeps each milestone on track.<\/p>\n<p>Start with a pre-approval that accounts for carrying two mortgages temporarily. Lenders want to see you can handle both payments if your current home hasn&#8217;t sold by closing day on the new one. In most Texas metros, homes priced correctly move in 25 to 40 days on market, so factor that sell-through pace into your contingency deadlines when writing the offer on your next property.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>90 to 120 days out: Get pre-approved, interview listing agents, and schedule a pre-listing inspection on your current home to catch repair issues before they slow a sale<\/li>\n<li>75 to 90 days out: List your current home. Pricing to sell within 30 days keeps your contingency window tight when you make an offer on the move-up property<\/li>\n<li>60 to 75 days out: Start touring move-up homes. Having your current property already listed or under contract makes any contingent offer you submit significantly stronger<\/li>\n<li>45 to 60 days out: Submit your contingent offer with a 72-hour kick-out clause giving the seller first right of refusal, which reduces their perceived risk<\/li>\n<li>30 to 45 days out: Coordinate both closings through one title company. Same-day or back-to-back closings eliminate the gap between selling and buying<\/li>\n<li>14 days out: Confirm both transactions are clear to close, line up movers, transfer utilities, and bind homeowner&#8217;s insurance on the new property<\/li>\n<\/ul>\n<\/div>\n<p>A buyer selling a $425,000 home in Round Rock and purchasing at $575,000 in Cedar Park might list in early March, go under contract by late March, and close both transactions the last week of April. That roughly eight-week sequence works when each milestone has a hard date on the calendar instead of a vague target. Build yours before you list.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"the-bottom-line\">The Bottom Line<\/h2>\n<p>A home sale contingency does not have to sink your move-up plan. Sellers in Texas accept contingent offers when the buyer proves their current home is market-ready, structures terms that limit the seller&#8217;s risk, and keeps the timeline tight. NAR data shows only 5% to 6% of contracts fall through each month, and home sale contingencies represent a fraction of that number. Once the option period ends, Texas law holds both parties to the executed contract.<\/p>\n<p>What matters most is preparation. A standard Texas closing runs 30 to 45 days, and a contingency adds milestones that can stretch that window. Price your current home correctly, get it listed before you write the offer, and build your contract to show the seller you are a serious buyer with a clear path to close.<\/p>\n<\/section>\n<section class=\"rl-faq\">\n<h2 id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n<details>\n<summary>Is there a standard home sale contingency form in Texas?<\/summary>\n<p>Yes. The Texas Real Estate Commission publishes the Addendum for Sale of Other Property (TREC 10-6). Your agent fills in the address of your current home, the number of days for the contingency period, and the terms of the kick-out clause. You can download the current version from the TREC website at no cost. Do not use generic templates from other states. Texas contract law has specific requirements around option periods and earnest money that out-of-state forms won&#8217;t address correctly.<\/p>\n<\/details>\n<details>\n<summary>What is a kick-out clause in a Texas home sale contingency?<\/summary>\n<p>A kick-out clause lets the seller keep marketing their home after accepting your contingent offer. If another buyer submits an offer, the seller gives you written notice (typically 72 hours under TREC 10-6) to either waive the contingency and commit to buying without selling first, or release the contract. Move-up buyers should plan for this before it happens. Know your bridge loan options or HELOC availability so you can respond quickly if the seller triggers the kick-out.<\/p>\n<\/details>\n<details>\n<summary>How do you make a contingent offer more attractive to a Texas seller?<\/summary>\n<p>Start by pricing your current home aggressively and getting it listed before you submit the contingent offer. Sellers want proof your home will actually sell. Include a pre-listing or active MLS status with your offer package. Shorten the contingency window to 30 days or less if your market supports it. Offer a larger earnest money deposit ($5,000 to $10,000 above the norm) to show commitment. Some buyers also get pre-approved for a bridge loan as a backup, which tells the seller you can close regardless.<\/p>\n<\/details>\n<details>\n<summary>Can a seller add a contingency to buy their next home before closing?<\/summary>\n<p>Yes, but it works differently. In Texas, sellers often negotiate a leaseback agreement rather than a formal contingency. A common move-up strategy: sell your home with a 30 to 60 day leaseback, giving yourself time to close on the next property. Alternatively, negotiate a delayed closing date. Sellers have more leverage here because the buyer already wants the house. Just know that stacking contingencies on both sides can make a deal fragile, and some buyers will walk if the terms get too complicated.<\/p>\n<\/details>\n<details>\n<summary>What are the biggest risks of a home sale contingency for move-up buyers?<\/summary>\n<p>The top risk is losing your target home. In competitive Texas markets like Austin, Dallas, and San Antonio, sellers often reject contingent offers outright when they have clean alternatives. Second: the kick-out clause forces a rushed decision. If the seller finds another buyer, you have roughly 72 hours to waive or walk. Third: your current home might sell for less than expected under time pressure, cutting into your move-up budget. Build a realistic pricing strategy with your agent before making any contingent offer.<\/p>\n<\/details>\n<details>\n<summary>How long does a buyer typically have to sell their current home under a contingency?<\/summary>\n<p>Most contingency periods in Texas run 30 to 60 days. The TREC Addendum for Sale of Other Property lets you and the seller agree on the exact number of days. Shorter windows (30 days or less) make your offer stronger. Longer windows (60 or more days) give you breathing room but increase the chance the seller triggers the kick-out clause. If your current home is already under contract, you can often negotiate a shorter contingency tied to your closing date, which sellers prefer.<\/p>\n<\/details>\n<details>\n<summary>What happens if your home doesn&#8217;t sell before the contingency deadline?<\/summary>\n<p>If the deadline passes and your home hasn&#8217;t sold, the contract typically terminates and the seller returns your earnest money. Under the TREC addendum, the contingency protects you from losing your deposit in this scenario. However, you lose the house and any inspection or appraisal costs you already paid. To avoid this outcome, price your current home competitively from day one, consider a pre-inspection to speed up your sale, and have a backup plan like a bridge loan or HELOC ready before the deadline approaches.<\/p>\n<\/details>\n<details>\n<summary>Are bridge loans a better option than a home sale contingency for a move-up buyer?<\/summary>\n<p>Bridge loans remove the contingency entirely, making your offer cleaner and more competitive. A bridge loan uses your current home&#8217;s equity as collateral so you can close on the new home before selling. Typical terms in 2026: 6 to 12 months, interest rates around 8% to 10%, with origination fees of 1.5% to 3%. The tradeoff is cost. If your home sells within 60 days, the interest expense is manageable. If it takes longer, those payments add up. Most move-up buyers in Texas use bridge loans only when facing a multiple-offer situation.<\/p>\n<\/details>\n<\/section>\n<footer class=\"rl-resources\">\n<h2 id=\"resources-used\">Resources Used<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.spinelliresidentialhomes.com\/blog\/understanding-contingencies-what-texas-sellers-should-know\" rel=\"noopener noreferrer\" target=\"_blank\">Spinelliresidentialhomes.com \u2014 Understanding Contingencies: What Texas Sellers Should Know<\/a><\/li>\n<li><a href=\"https:\/\/www.cindycogginsrealtygroup.com\/buying-your-next-north-texas-home-with-a-sale-contingency-or-a-bridge-loan-what-to-know-in-2025\" rel=\"noopener noreferrer\" target=\"_blank\">Cindycogginsrealtygroup.com \u2014 Buying Before You Sell: Navigating Contingencies &amp; Bridge Loans &#8230;<\/a><\/li>\n<li><a href=\"https:\/\/www.homelight.com\/blog\/buyer-contingent-upon-selling-house\/\" rel=\"noopener noreferrer\" target=\"_blank\">Homelight.com \u2014 Making an Offer Contingent Upon Selling a House: How to Do It<\/a><\/li>\n<li><a href=\"https:\/\/daughtreylaw.com\/2024\/10\/29\/crafting-contingencies-in-texas-real-estate-deals\/\" rel=\"noopener noreferrer\" target=\"_blank\">Daughtreylaw.com \u2014 Navigating Contingencies in Texas Property Transactions<\/a><\/li>\n<li><a href=\"https:\/\/www.rate.com\/mortgage\/resource\/protect-your-budget-with-sale-contingency\" rel=\"noopener noreferrer\" target=\"_blank\">Rate.com \u2014 Sale contingencies: Your key to buying and selling a house at the &#8230;<\/a><\/li>\n<\/ul>\n<\/footer>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Process \u00b7 Guide Home Sale Contingency Texas Move Up Plan Connect with LRG \u2192 Why Sellers Get Nervous About Contingent Offers Seven Ways to Make Your Contingent Offer Stronger What Happens Between Contract and Closing in Texas? Can the Seller Back Out After Option Period? FAQs A home sale contingency protects Texas move-up buyers if [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2195,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64,37],"tags":[],"class_list":["post-2192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lrg-blog","category-move-up"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Home Sale Contingency in Texas: Key Insights for 2026 | LRG<\/title>\n<meta name=\"description\" content=\"Learn how home sale contingencies work in Texas. Understand their impact on your offer with local market insights and make informed decisions. 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