Several sellers accept an offer that is subject to the sale of the buyer's present home. To avoid waiting around forever, they can insist that the contract include

A financing contingency relates to the buyer's ability to secure a loan to purchase the property. While important, it does not address the issue of the buyer's current home needing to sell before the purchase can proceed. This type of contingency does not provide sellers with a mechanism to terminate the contract if the buyer’s home does not sell.

A liquidated damages provision stipulates the compensation due to the seller if the buyer breaches the contract. However, this does not help sellers avoid the wait associated with the sale of the buyer's home; it instead deals with the consequences of potential contract breach.

An earnest money deposit is a sum paid by the buyer to demonstrate their commitment to the purchase. While it can provide some assurance to sellers, it does not resolve the issue of the buyer's home needing to sell first, nor does it allow sellers to exit the contract if that sale does not happen in a timely manner.