I am considering selling my home and looking for a larger one. I dont have a down payment for the new home. Is there a way that a contract would be contingent for the down payment from selling my first home to use for the down payment on the 2nd? And what happens if it takes a while to sell my original home?
Absolutely! It is a common practice to buy a property contingent upon the sale of your property. Any real estate agent should be able to help you in working up your offer along with the contingency clause.
If you are writing an offer with a sales contingency, you would want to give yourself ample time to complete the sale of your property prior to your purchase offer expiring. Normally, it is not a good idea to put in a purchase offer with a sales contingency, unless you already have accepted an offer on your property. Even though you are putting in a offer to purchase another home contingent upon the sale of your property; most sellers will want an expiration date on the contract. This is to protect them from having to wait an unacceptable amount of time for you to sell your property.
It is always a good idea to put yourself in the shoes of the other party when preparing and negotiating your offer. If someone came to you and said, "I'd like to buy your home, but we have to wait until my home sells." Would you accept that offer? What if it took 2 years until that property sold?
If you do submit your offer and have not already accepted an offer on your home, be ready to price it to sell quick.