What is a Home of Choice Contingency?
A home of choice contingency is a contingency in a real estate sales contract that protects a seller from having to sell their current home if they haven't found their next home.
In Northern Virginia, our home of choice contingency is as follows:
CONTINGENT ON THE SELLER PURCHASING ANOTHER HOME. This Contract is contingent on until 9pm ______ Days after the Date of Ratification ("Deadline") to allow the Seller to obtain a ratified contract to purchase another home. This contingency will terminate at the Deadline and this Contract will remain in full force and effect unless the Seller delivers Notice, prior to the Deadline, to the Purchaser that this Contract is void.
What's most important for Northern Virginia sellers to realize is that if you aren't careful about watching the calendar on this one, you can end up in a contract to sell, regardless of finding another home, if you allow the deadline to pass without voiding the contract or re-upping the time frame in the contingency.
The desired time frame to fill in the blank will be determined in consultation with your real estate agent. They will know how much inventory is on the market and how likely it is that you will find what you are looking for in your next home, particularly if you are moving to another home in the same market. If not, your listing agent will need to consult with your out of area buyer's agent.