Ready to move up in St. Louis Park but need to sell your current home first? You are not alone. Many 55416 buyers want a smooth, single move without juggling two mortgages or risking earnest money. In this guide, you will learn how home sale contingencies work in Minnesota, what timelines and kick-out clauses look like, and practical ways to make your contingent offer stand out. Let’s dive in.
Home-sale contingency basics
A home-sale contingency makes your purchase of a new home conditional on the sale, and often the closing, of your current home. It protects you if your home does not sell in time, so you do not end up owning two homes at once.
Common variations include:
- Sale-and-close contingency: Your purchase depends on your current home closing by a set date.
- Sale-only contingency: Your purchase depends on getting an accepted purchase agreement on your home, not necessarily closing yet.
- Proof-of-effort requirement: You agree to show written evidence that your home is actively listed and marketed.
- Contingency with a kick-out clause: The seller can keep marketing their home and accept a backup offer that may trigger a deadline for you to remove your contingency.
You may also pair this with other standard protections like financing, inspection, appraisal, and title contingencies.
Minnesota contract basics
In the Twin Cities, many agents use Minnesota REALTORS standard purchase agreements and addenda that cover a “sale of buyer’s property” contingency and removal steps. The exact protections, deadlines, and rights depend on the contract you and the seller sign.
Earnest money is usually refundable if you follow the contingency terms and still cannot close. If you miss a deadline or do not follow the removal procedure, your earnest money could be at risk. Clear contract language and on-time communication are essential.
Local listings run through NorthstarMLS. Acceptance of contingent offers in St. Louis Park changes with market conditions. In stronger seller markets, contingent offers are less common. In more balanced markets, you may see more flexibility.
Timeline and kick-out in 55416
While every offer is negotiated, here are typical ranges seen in the area:
- Contingency period to sell: Often 30 to 60 days. Some deals set 21 to 30 days or up to 90 days based on needs.
- Kick-out response window: Usually 24 to 72 hours. A 48-hour window is common, but the contract controls.
- Inspection period: Often 7 to 14 days. Shorter windows can boost competitiveness.
- Financing timeline: Lenders often need 21 to 45 days to issue a commitment, so align contract deadlines with your lender.
How a kick-out clause works:
- Your offer is accepted with a sale contingency.
- The seller continues marketing the home.
- If the seller receives a ready backup offer, you get written notice with a response deadline.
- You either remove your contingency within the window or let it lapse. If it lapses, the seller can proceed with the backup buyer.
- If you remove the contingency on time, the contract continues and the seller proceeds with you.
Build realistic time for title work and lender requirements. In Hennepin County, closings and recordings can take several business days. Leave space in your timeline for title review, tax prorations, and payoff coordination.
Make your contingent offer competitive
Sellers want certainty. Your goal is to reduce their risk and increase confidence in your timing. Consider these strategies:
- Shorten key windows
- Offer a realistic but tighter sale deadline, such as 30 days instead of 60.
- Shorten inspection and financing timelines where possible.
- Use a seller-friendly kick-out clause
- Allow the seller to keep marketing and accept backup offers.
- Offer a shorter response window for you to remove the contingency, such as 24 to 48 hours, if you can perform quickly.
- Show proof and readiness
- List your home on MLS with strong photos and a clear pricing strategy.
- Provide evidence of marketing activity and showings.
- Share pre-inspection results or a repairs plan to show your home is market-ready.
- Strengthen your financial picture
- Include a current lender pre-approval.
- Consider a larger earnest money deposit, and if appropriate, discuss making a portion nonrefundable when you remove the contingency. Document terms in the contract.
- Explore bridge options
- Consider a bridge loan, HELOC, or personal funds to reduce reliance on the sale contingency.
- If you have access to bridge funds, note it in your offer package.
- Flex on non-price terms
- Offer a flexible closing date or a post-closing occupancy period if the seller needs time.
- Ease closing logistics where you can.
- Limit inspections carefully
- Consider a shorter inspection period or modest limitations on seller repairs. Weigh the added risk before agreeing.
- Consider a sale-only approach
- Instead of requiring your current home to close, you may structure the contingency so it only requires an accepted purchase agreement. If your buyer looks solid, some sellers will accept this.
Smart closing sequences for move-up buyers
You have two main paths:
- Sell first, then buy: This is often the simplest path financially. You avoid carrying two homes at once. The tradeoff is timing your move and possibly a temporary rental.
- Concurrent closings: You sell and buy the same day or in tight sequence. This requires detailed coordination among lenders, title, and both sides’ agents, and may still depend on a sale contingency or bridge funds.
Work with your lender and agent to map deadlines and ensure funding, title work, and recording can happen on the dates you need.
Buyer prep checklist
Use this quick list before you write a contingent offer:
- Get a current lender pre-approval that states your ability to close and notes any need for sale proceeds.
- Prepare your listing plan, pricing strategy, and professional photos before you make offers.
- Choose your contingency type and set a realistic deadline.
- Decide on a kick-out response window you can reliably meet, often 24 to 72 hours.
- Set your earnest money amount and whether any part becomes nonrefundable after removal.
- Consider a pre-inspection or a thorough disclosure package for your home.
- Line up bridge financing options or backup funds if needed.
- Have your agent and, if needed, an attorney review the contingency addendum language.
Avoid common pitfalls
- Unrealistic timelines: Overly long or vague deadlines reduce your odds of acceptance. Align with lender and title timelines.
- Weak documentation: If your home is not listed or market-ready, sellers worry your sale will stall.
- Ignoring the kick-out risk: Be ready to act fast if a backup offer appears. Set reminders and plan your decision path in advance.
- Earnest money confusion: Know when and how it becomes refundable or nonrefundable, and follow the contract’s notice steps exactly.
- Skipping due diligence: Shorter inspections can help you compete, but do not give up essential protections without a plan.
What this means for 55416 right now
In St. Louis Park, seller openness to contingencies shifts with inventory and days on market. In a warmer seller market, non-contingent or bridge-backed offers win more often. In a balanced market, tight, well-documented contingencies can succeed. Ask your agent to review current NorthstarMLS and local broker insights for 55416 so your strategy matches the moment.
Next steps
A thoughtful plan can turn a complex move into a single, smooth transition. If you want help tailoring your contingency, aligning lender and title timelines, and presenting a competitive offer in St. Louis Park, connect with Sara Moran. Let’s talk about your next move.
FAQs
What is a home-sale contingency in Minnesota?
- It makes your new purchase conditional on selling, and often closing on, your current home by a set date, using Minnesota REALTORS contract language to define rights and deadlines.
How long do I usually have to sell in 55416?
- Typical negotiated windows run 30 to 60 days, with shorter periods used to strengthen offers when market conditions are competitive.
How does a kick-out clause affect my offer?
- The seller may keep marketing and accept a backup offer. If they do, you will get written notice and a short window, often 24 to 72 hours, to remove your contingency.
Will I lose my earnest money if my home does not sell?
- If you meet the contingency terms and timelines, earnest money is typically refundable. If you miss deadlines or fail to follow procedures, it could be at risk.
What can I do to compete with non-contingent buyers?
- Shorten deadlines, provide strong listing and marketing proof, increase earnest money, consider bridge financing, and offer flexible seller terms like a preferred closing date.
Can I structure the contingency to require only an accepted contract on my home?
- Yes. A sale-only approach can be more acceptable to some sellers, especially if your buyer looks solid and the closing date is clearly defined.
