What Is a Home Sale Contingency and How Does It Work in New Hampshire?

🏡 What Is a Home Sale Contingency and How Does It Work in New Hampshire?

In markets like Plymouth, Campton, Thornton, Rumney, and across Central NH, many buyers need to sell their current home before they can purchase their next one.

A home sale contingency gives them the time to do that — while also protecting them if their existing property doesn’t sell in time.

Here’s how these contingencies work in NH and what both sides should understand.

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What Is a Home Sale Contingency?

A home sale contingency allows a buyer to make an offer on a new home while still needing to sell their existing one.

If the buyer’s current property does not sell within the agreed timeline, they can back out without losing their earnest money.

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Why Buyers Use Home Sale Contingencies

Common reasons include:

✔ Their funds depend on the proceeds from their current home

✔ They want to avoid having two mortgages at once

✔ They’re moving from out-of-state and timing is tight

✔ They want a safety net in case their home sits longer than expected

Home sale contingencies make buying more affordable and less risky for many NH homeowners.

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Types of NH Home Sale Contingencies

The two most common versions:

🔹 Sale and Settlement Contingency

Buyer’s current home is not yet under contract.

Riskier for sellers.

🔹 Settlement Contingency

Buyer already has their home under contract, but has not closed yet.

More attractive to sellers because there’s already a buyer in place.

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How Long Do These Contingencies Last?

Most NH home sale contingencies run:

• 30–60 days when the home is already listed

• 45–90 days if the home is preparing to hit the market

• Flexible timelines depending on market conditions

Some sellers add “kick-out clauses” to protect themselves.

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What Is a Kick-Out Clause?

A kick-out clause allows the seller to continue showing the property.

If a stronger offer comes in, the original buyer gets a set amount of time — usually 24 to 72 hours — to remove their home sale contingency or step aside.

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What Sellers Should Consider

Sellers must weigh:

✔ Risk the buyer’s home won’t sell

✔ Possible delays in closing

✔ Whether their home is in high demand

✔ If they’re willing to accept a stronger backup offer

In competitive areas like Plymouth and Holderness, sellers often prefer buyers without home sale contingencies — unless the buyer is already under contract.

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What Buyers Should Consider

Buyers should keep in mind:

• Their offer may be less competitive

• Sellers may counter with higher price or shorter deadlines

• They may need to list their current home quickly

• A kick-out clause could push them to act fast

A well-planned listing strategy helps increase acceptance chances.

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Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com