Are you trying to buy in Hinsdale but need the proceeds from your current home first? You are not alone. Timing two closings is stressful, and the language in your contract can make or break your plan. In this guide, you will learn how home sale contingencies work in Illinois, what local sellers expect, and how to strengthen or evaluate a contingent offer in today’s Hinsdale market. Let’s dive in.
What a home sale contingency means in Illinois
A home sale contingency, sometimes called a “sale of buyer’s property” contingency, makes your purchase dependent on selling or closing your current home first. If your sale does not happen within the agreed timeline, you can usually cancel without breaching the contract if the language allows it.
In Illinois, contingencies are contract terms, not a single statewide rule. Your rights come from the written contract and addenda you sign. Local brokers and real estate attorneys often use standardized forms that include a “Sale of Buyer’s Property” addendum or similar language. Title and closing companies then follow those instructions to coordinate escrow and closing.
Because every clause is enforceable only as written, clear language and strict compliance with deadlines are essential. Illinois transactions commonly include attorney review to ensure the contingency says exactly what you intend.
How it works in Illinois contracts
Key terms to define
- Trigger event: Decide if the contingency is satisfied when your home is under a signed contract or only when your sale actually closes and funds.
- Deadline format: Use specific dates or a clear number of days after acceptance. State if you mean calendar days or business days, and what happens on weekends or holidays.
- Documentation: Spell out what proof you must provide, and by when.
What satisfies the contingency
Your contract should say whether you must simply have a ratified contract on your home or a completed closing. Some sellers prefer the earlier trigger because it reduces uncertainty. Others insist on a closing requirement to be safe. Put the standard in writing so there is no debate later.
Proof and marketing requirements
Sellers often ask for evidence that you are actively working to sell. Common proof includes a signed listing agreement, an MLS printout, or a fully executed contract on your home. Some agreements require that your home be listed on the MLS and visibly marketed. This helps prevent the contingency from being used to stall.
Earnest money and termination
Your contract should say what happens to earnest money if your home does not sell by the deadline. Many forms return earnest money to the buyer if the contingency is not met and the buyer terminates according to the contract. If a buyer fails to follow the contingency terms, the seller may have the right to keep the earnest money if the contract provides for that.
Kick-out clauses keep sellers protected
A kick-out, sometimes called a right-to-continue clause, lets the seller accept your contingent offer and keep marketing the home. If the seller receives another acceptable offer, you get a short notice period, often 24 to 72 hours, to remove your sale contingency and move forward. If you cannot, the seller can cancel your contract and accept the other offer. This gives you a shot while reducing the seller’s risk.
How it interacts with other contingencies
- Financing contingency: If your purchase depends on loan approval, your contract should connect the sale contingency and financing terms. You may need both your home sale and a loan commitment to proceed.
- Appraisal contingency: With financing, a low appraisal can derail the deal or trigger a renegotiation. This is relevant in higher price points where appraisal gaps sometimes occur.
- Inspection contingency: You get a set period to inspect and request repairs or cancel if the contract allows.
- Title and survey: Most buyers require clear title, a current survey, and title insurance. The contract should set objection and cure timelines.
Closing coordination
If your sale and your purchase must occur on the same day, build that intent into your contract language. Local title companies and attorneys routinely coordinate simultaneous or sequential closings. State who holds earnest money, how it will be released, and how any disputes are resolved.
Hinsdale and DuPage market reality
Hinsdale is an established suburb with a mix of classic homes and newer builds. In a competitive seller market with tight inventory, sellers are less likely to accept offers that depend on a buyer’s sale. When a listing has been on the market longer, or during slower seasons, sellers tend to be more open to contingencies.
At higher price points, many buyers rely on proceeds from a current home. That makes the details of your contingency even more important. Offers without a sale contingency, especially cash or fully underwritten financing, are usually stronger in the eyes of a seller. If you do need a contingency, you can still compete by tightening timelines, offering strong proof, and agreeing to kick-out protection.
Seasonality matters in DuPage County. Spring and summer can be more competitive. In winter, sellers may be more flexible. Interest rates and local inventory also influence how a seller views a sale-dependent offer.
Strategies for Hinsdale buyers who need to sell first
You can improve your odds by removing uncertainty for the seller and proving you have a plan.
- Shorten windows: Aim to get your home under contract in 14 to 21 days if feasible, then allow additional time for your buyer’s closing.
- Agree to active marketing: List on the MLS at a market-supported price and be ready to show proof of activity or a pending contract.
- Offer a kick-out clause: Give the seller the right to keep marketing and accept backup offers, with a clear 24 to 72 hour notice to you if they receive another offer.
- Coordinate financing early: Talk with your lender about bridge financing or a HELOC so you can remove the sale contingency sooner if needed.
- Plan for timing gaps: Consider simultaneous closings, a short rent-back from the buyer of your home, or a brief temporary rental if timelines do not align.
- Prepare your home to sell fast: Targeted improvements, staging, and professional marketing can speed your sale and support tighter contingency deadlines. Johnny’s renovation-first approach and Compass Concierge can help you focus on the updates that deliver measurable results without taking on contractor stress.
Guidance for sellers evaluating a contingent offer
Protect your timeline while giving good buyers a fair path to close.
- Require a kick-out: Keep marketing the home and set a short notice window for the buyer to remove the contingency if another offer arrives.
- Ask for proof: Require an active MLS listing and, when available, a signed contract on the buyer’s home. Set deadlines to deliver updates.
- Negotiate earnest money: Clarify when earnest money is refundable and when it may be retained if the buyer fails to comply with the terms.
- Keep leverage: Continue marketing until the contingency is satisfied, and use clear calendar dates for all milestones.
- Use attorney review: Have your attorney confirm that the contingency, proof requirements, and remedies are unambiguous.
Example timeline and checklist
Use clear calendar dates or a specific number of days. Here is a simple framework you can tailor with your agent and attorney.
- Day 0: Both parties sign the purchase contract. All clocks start.
- Within 7 to 21 days: Buyer provides proof their current home is listed and actively marketed, or proof it is under contract if required by the contingency.
- Inspection period: Buyer completes inspections and submits any requests, often within 7 to 10 days.
- Kick-out window: If the seller receives another acceptable offer, the buyer gets a 24 to 72 hour notice period to remove the sale contingency and proceed.
- Financing milestone: Buyer obtains a loan commitment by a set date before closing, if financing is part of the purchase.
- Closing coordination: If the buyer’s sale funds the purchase, schedule simultaneous or same-day closings and confirm wiring and title details in advance.
Remember, these are examples. Your contract should define exact timelines in writing.
Risk management and clear communication
Sale-contingent deals work when both sides follow the contract precisely. Missing a deadline, failing to provide proof, or trying to change terms informally can cause disputes. Keep every notice and contingency removal in writing. Use your agent and a real estate attorney to monitor dates, deliver documents on time, and document all changes with signed amendments.
A strong plan for listing prep and marketing your current home also lowers risk. When your home shows well, is priced to the market, and moves quickly, you create confidence for the seller and make your purchase offer more attractive.
If you are deciding whether to accept or make a contingent offer in Hinsdale, the right strategy and clear contract language can remove stress and keep you on track.
Ready to plan your timeline, tighten your contingency, and prepare your current home to sell faster and for more? Reach out to Johnny Kloster for a focused plan that combines contract strategy with hands-on listing preparation.
FAQs
While buying in Hinsdale, can a seller accept another offer if I have a sale contingency?
- Yes, if a kick-out or right-to-continue clause is in the contract, the seller can keep marketing and you will get a short notice period to remove your contingency.
In Illinois, what happens to my earnest money if my sale contingency is not met?
- If your contract allows termination when the contingency fails and you follow the terms, earnest money is typically returned, but it can be retained if you default under the contract.
As a buyer, can I be forced to close if my current home does not sell?
- Not if your sale contingency is properly written to protect you, since a valid unsatisfied contingency usually allows cancellation without breach.
Is proof of listing my home enough to satisfy most Hinsdale sellers?
- Often sellers want more, such as an active MLS listing plus an executed contract on your home, so your contract should clearly state what proof is required.
Are sale contingencies common in Hinsdale right now?
- Acceptance depends on market conditions, price point, and days on market, with sellers less likely to accept contingencies in competitive periods without strong buyer concessions.
