Home Sale Contingency: How to Sell Your Home and Buy New Construction in Collin County
Updated Nov 7, 2026. By Hilda Avila, REALTOR®, Ebby Halliday Real Estate, LLC.
Short answer: A home sale contingency makes your purchase depend on selling your current home first. With new construction in Collin County, each builder sets its own rules on contingencies, so the bigger challenge is timing: lining up your sale’s closing with the new home’s completion date. Know your current home’s likely value before you sign.
Moving from a home you own into a new build is one of the more complicated moves in real estate. You’re a seller and a buyer at once, and one side runs on a builder’s schedule. I help clients plan this so they aren’t paying two mortgages longer than they need to, or packing in a rush. Here’s how it works.
What is a home sale contingency?
A home sale contingency is a condition in your purchase contract that says you’ll buy the new home if your current home sells, usually by a set date. If it doesn’t sell in time, you may be able to end the purchase under the terms you agreed to.
In Texas resale transactions, this is usually done with TREC’s Addendum for Sale of Other Property by Buyer (TREC No. 10-6). It sets a date by which you must receive the proceeds from your sale. If the seller accepts another written offer, the seller can notify you and require you to waive the contingency within the number of days you agreed to. To waive it, you deposit additional earnest money. If you don’t waive it in time, the contract ends and your earnest money is refunded. Builders usually use their own contracts, so ask each builder how they handle a sale contingency.
Why sellers and builders are cautious about it
A sale contingency adds uncertainty for the other side. They’re waiting on a sale they don’t control. That’s why some resale sellers won’t accept one, and why builders handle it in very different ways.
How builders handle sale contingencies
Builders write their own purchase contracts, so the rules vary by builder and even by community. Depending on the builder, you may see:
- No sale contingency accepted, especially on homes that are close to finished.
- A contingency allowed if your home is already listed or under contract.
- A contingency allowed for a limited time, with a deadline to remove it.
- Deposits or upgrade payments that may not be refundable. Ask about this up front and read the contract.
Ask before you sign anything, and have your own agent with you from the first visit. Many builders require your agent to be registered on that first visit, which I explain in Builder registration: bring your own agent. Agent compensation is not set by law and is fully negotiable. That applies to the listing on your current home and to your agent on the new build, so ask how it will be handled and get it in writing.
Can you sell and buy at the same time?
Yes, many people do. It just takes a plan. These are the most common approaches I see.
Option 1: Sell first, then buy a quick move-in home
You sell your current home, then buy a new build that’s finished or almost finished. Once your sale closes and proceeds are confirmed, you have firmer information about the funds available for the purchase. The new home’s closing and possession dates still depend on its contract and readiness. The tradeoff is that you’re choosing from homes that are already built, not picking every finish.
Option 2: Buy a to-be-built home, then list as it nears completion
You sign for a home that hasn’t been built yet, then list your current home when the build is close to done. Build schedules can shift, so leave yourself some cushion. Your contract and the builder’s timeline may not line up perfectly.
Option 3: Sell with a short leaseback
You sell your home and arrange to stay for a short, agreed-upon time after closing while your new home finishes. Your buyer has to agree to it, and the terms need to be in writing.
Option 4: Buy first with financing that covers the gap
Some buyers can qualify to carry both homes for a while, or use a bridge loan or home equity line. This depends entirely on your finances and your lender, so talk to a lender before counting on it.
Price your current home for the market you’re in
Your sale has to compete with the homes available when you list. Review current comparable listings and recent sales, and ask how builder incentives nearby may affect the choices buyers are considering. Do not set your timing plan from a countywide market statistic alone.
Two things to keep in mind:
- Builders are competing for your buyer too. New builds near you may offer incentives, so your listing price and condition need to account for that. I go deeper in my guide to pricing your home in a buyer’s market.
- Plan from an estimate of your net, not your hoped-for price. Your net proceeds shape your down payment and how much risk a contingency adds. My page on comparing offers and net proceeds shows how to estimate it.
For city-specific value context, see my Frisco, McKinney, Plano, and Allen home value pages.
A two-home milestone and delay planner
Selling a home while buying new construction means tracking two transactions and the gap between them. Use the planner below to separate a target date from a date or deadline written into a signed agreement. A builder’s progress update is not, by itself, a change to either contract.
Write the date, source document and person responsible for confirming each item. Leave a space blank while you are checking it; do not treat a blank as permission to proceed.
| Milestone | Current-home sale: date and source | New-home purchase: date and source | Person to confirm / next action |
|---|---|---|---|
| Financing plan reviewed, including any overlap | |||
| Home preparation and listing target | |||
| Contract signed and deposits due | |||
| Sale-contingency deadline, if included | |||
| Other notice, financing and review deadlines | |||
| Inspections and written repair follow-up | |||
| Builder completion target and latest written update | |||
| Rate-lock expiration and possible extension terms | |||
| Closing, funding and availability of proceeds | |||
| Possession, keys and any agreed leaseback | |||
| Movers, storage and temporary-housing arrangements |
Ask your lender whether approval depends on selling first, receiving the sale proceeds or meeting other conditions. Ask the title company when proceeds are expected to be available for the next transaction. Do not assume that signing closing documents means funds are immediately available or that possession follows on the same schedule.
Before you commit to either timeline
- Obtain the builder’s written terms on completion, contingencies and deposits. Ask a real estate attorney to explain any termination rights or money at risk.
- Ask the lender what changes if you own both homes for longer than planned. Financing alternatives are subject to qualification and availability, not automatic options.
- Choose a backup housing plan and obtain current quotes before relying on it.
- If considering a leaseback, confirm that the buyer agrees and that the lender, insurance arrangements and written lease terms allow the proposed occupancy. An extension is not automatic.
- Keep contract deadlines in view while waiting for construction updates. Request advice early enough to act within your actual agreement.
If construction or your sale is delayed
| What changed? | Confirm first | Decision to review before committing |
|---|---|---|
| Builder moves the expected completion date | Written update and relevant contract terms | Rate lock, sale closing, possession and backup housing |
| Current home has not sold as expected | Listing feedback, current offer status and lender requirements | Listing strategy, contingency deadlines and cash needs |
| Buyer of the current home asks to delay closing | Proposed written amendment and funding implications | Whether you can still meet the new-home closing requirements |
| Sale funds will arrive later than expected | Title company’s funding/disbursement information | Timing of the new closing and any lender conditions |
| Leaseback or temporary lodging will end too soon | Written occupancy terms and alternative availability | A separately agreed extension or another housing option |
A request to change one date does not change another agreement. Have the responsible parties document any agreed changes. Do not waive a protection, assume a deposit is refundable or promise a new possession date based only on a verbal update.
Record the backup plan
| Item | Your notes |
|---|---|
| Where you could stay if the dates do not align | |
| Availability and cancellation terms checked on | |
| Storage/moving quotes and expiration dates | |
| Extra costs to review with your lender | |
| Deadline that would trigger a new decision | |
| Person you will ask to confirm each next step |
Contact Hilda to discuss your two-home timing questions. Share your current home’s city, the builder community and your intended move window. Send sensitive loan or contract documents only through an agreed secure channel.
This planner is not a contract amendment, financing approval or guarantee of completion. Your signed agreements control, and an attorney can explain your legal options.
If you’re still deciding whether a new build is the right move, my post on Resale vs. new construction in Collin County compares the two. My new construction guide covers the process. Many of the newer communities are in growth areas like Prosper and Celina, which sit in both Collin and Denton counties, so check which county an address is in.
Frequently asked questions
What is a home sale contingency?
A home sale contingency is a condition in a purchase contract that makes your purchase depend on selling your current home, usually by a set date. If your home doesn’t sell in time, you may be able to end the purchase under the terms you agreed to.
Can I sell and buy at the same time?
Yes. Common approaches are selling first and buying a quick move-in home, buying a to-be-built home and listing as it nears completion, selling with a short leaseback, or using financing that lets you carry both homes for a while. The right choice depends on your finances and timeline.
Do builders accept home sale contingencies?
Some do and some don’t. Builders write their own contracts, so their rules vary by builder and community. Some won’t accept one at all, and others allow it with conditions, such as your home already being listed. Ask before you sign.
Should I sell my house before buying new construction?
Selling first can clarify the proceeds available for your purchase, but it may require temporary housing and does not guarantee that the next home will be ready on your preferred date. Buying first may create overlap costs and requires lender approval for your situation. Compare both paths using your contracts, financing requirements and backup housing plan.
How do I know what my current home is worth before I buy?
A custom home valuation looks at recent nearby sales and your home’s features to estimate a likely price range. It’s not an appraisal, and it doesn’t guarantee a sale price, but it gives you a realistic starting point for planning.
Start with your current home’s value
Knowing roughly what your current home could sell for makes every other decision easier. You can request a free custom home valuation. I’ll look at recent nearby sales and your home’s features. It’s not an appraisal, and there’s no obligation.
This post is general information, not legal or lending advice.