I've Been Getting a Lot of Questions About This

If you're a homeowner thinking about making a move, chances are you've run into this question: do I have to sell my current home before I can buy the next one?

It's one of the most common scenarios I work through with clients across Franklin, Brentwood, Spring Hill, and Thompson's Station. And it's exactly the kind of situation where the order of operations matters enormously.

There are many contingencies involved when you buy or sell a home - financing contingencies, inspection contingencies, appraisal contingencies. Nationally, roughly 82% of home buyers include at least one contingency in their purchase offer. All of these serve a legitimate protective function for buyers. But the one that comes up most often in my conversations - and the one that requires the most careful thinking - is the home sale contingency.

What Is a Home Sale Contingency?

A home sale contingency is a clause in a purchase contract that says: I cannot buy this home until my current home sells first.

On its surface, that sounds completely reasonable. And in many cases it is. If your down payment is tied up in the equity of your current home, or if carrying two mortgages simultaneously isn't financially feasible for your household, a home sale contingency is a tool that exists specifically for that situation.

But here's what's easy to overlook: when you submit an offer with a home sale contingency attached, you are asking a seller to take their home off the market while you try to sell yours. You are asking them to pause - to stop showing their property to other buyers, to decline competing offers - and wait on an outcome they have no control over.

That is a significant ask in any market. And in Williamson County, where the average home value sits near $916,000 and homes are going pending in around 16 days, sellers have options.

Why Sellers Are Cautious About Home Sale Contingencies

Put yourself in a seller's position for a moment. You've listed your home. You receive two offers on the same day. One offer has a home sale contingency attached, meaning the deal can only close if the buyer's current home sells within an agreed-upon timeframe. The other offer has no such condition.

All else being equal, which offer would you accept?

Most sellers choose the cleaner offer - and they're right to do so. A home sale contingency introduces a second transaction they can't see, can't control, and can't predict. If the buyer's home sits on the market longer than expected, falls out of contract, or doesn't appraise, your deal falls apart with it.

That's not hypothetical. In Middle Tennessee's current market, around 16% of accepted contracts fall apart before closing - most commonly during the contingent phase. Sellers who understand that number think carefully before tying their home to a contingent buyer.

Some sellers will accept a home sale contingency - particularly when the market has slowed, inventory has increased, or the offer is otherwise very strong. In those cases, sellers sometimes negotiate a kick-out clause: a provision that lets them continue marketing the home and give the contingent buyer a short window (typically 24 to 72 hours) to either remove the contingency or step aside if a better offer comes in.

But accepting that kind of arrangement means you could be forced to make a fast decision under pressure - either come up with the funds to proceed without your home sale or lose the property you've fallen in love with. That's a stressful position to be in.

Kate's Approach: Get Your Home on the Market First

Here's what I always advise clients who are thinking about moving up - selling one house and buying another. It's almost always best to go ahead and get your current home on the market first.

Here's why that sequencing changes everything.

When your home is already listed - or better yet, already under contract - you walk into any offer negotiation from a position of strength. You're no longer asking a seller to wait on an unknown. You can say: my home is under contract, here are the terms, here is my expected closing date. That is a fundamentally different conversation than "I'd like to buy your home, but first I need to sell mine."

Getting your current home under contract before you make an offer on the next one gives you a better negotiating position at every level. It can influence whether your offer gets accepted at all, how the seller responds to price negotiations, whether they're willing to accommodate your preferred closing timeline, and how much leverage you have if inspection issues come up.

In a market where desirable homes in Franklin and Williamson County are still moving in two to three weeks, showing up as a prepared, non-contingent buyer - or as close to it as possible - is a meaningful competitive advantage.

The Practical Steps for Move-Up Buyers in Franklin and Williamson County

If you own a home and you're thinking about buying your next one, here's the sequence that tends to work best.

First, get a realistic picture of what your current home is worth in today's market. The Williamson County market has moderated from its peak years, and pricing your home accurately from the start is the single most important factor in how quickly it sells. Overpricing is still the most common reason homes sit longer than expected.

Second, prepare your current home for the market. That means addressing deferred maintenance, decluttering, and thinking strategically about presentation. Buyers in this price range are discerning, and a well-prepared home gives you the best shot at a strong offer quickly.

Third, get pre-approved for your next purchase. Even while your current home is being prepared or just listed, talk to your lender about your buying power. Know what you can afford both with and without the equity from your current sale - that clarity helps you move confidently when the right home comes up.

Fourth, start actively looking. Once your home is on the market, you're in a position to write a competitive offer on a home you love. If your home sells quickly and the next one takes time to find, you can negotiate a leaseback arrangement with your buyer, giving yourself additional time to transition.

Fifth, write your strongest offer. When your current home is under contract, you can make an offer on your next home without a home sale contingency - or with a much shorter, cleaner contingency window if one is truly necessary. That's when your negotiating position is at its best.

When a Home Sale Contingency Does Make Sense

It would be misleading to say home sale contingencies are always the wrong move. There are situations where they're the right tool.

If your new purchase simply cannot be financed without your current home's equity - and bridge financing or other options aren't available to you - then a home sale contingency is sometimes the only viable path. In a slower segment of the market, or with a property that has been sitting for a while, sellers are more open to contingent offers. And if you're working with a seller who is also in a move-up situation, there may be genuine empathy for the complexity involved.

The key is going in with eyes open. Know what you're asking of the seller. Understand how a kick-out clause works and what it means for your decision timeline. And make sure the rest of your offer is as strong as possible - price, earnest money, flexibility on closing date - to offset the uncertainty the contingency introduces.

A Word About the Current Williamson County Market

The Williamson County market has shifted from the extreme competitive pressure of 2021 and 2022, but it remains one of the most active and desirable markets in Tennessee. The average home value in the county is approximately $916,000, and well-priced, well-prepared homes are still moving quickly.

That means sellers have enough activity to be selective. A contingent offer in this environment needs to be otherwise compelling to get accepted. And it means buyers who do the preparatory work - listing first, knowing their numbers, working with an agent who understands the local market - are still in a strong position to find and close on the right home.

If you're thinking through this kind of move and want a clear-eyed picture of what your current home might bring in today's market, that's exactly the kind of conversation I'm here to help with.

Ready to Think Through Your Move?

Whether you're just starting to explore a move or you're ready to get your current home on the market, I'd love to help you map out the right sequence for your situation. I work with buyers and sellers across Franklin, Brentwood, Spring Hill, Thompson's Station, and all of Williamson County.

Let's figure out your strongest path forward - for both sides of your transaction.