When should a buyer use a buyer contingency addendum?

A buyer should use a buyer contingency addendum when they need to sell their current home before completing the purchase of another property. This addendum serves as a protective measure, allowing the buyer to make an offer on a new home while including a condition that the agreement is contingent upon the successful sale of their existing home. By doing so, the buyer mitigates the risk of carrying two properties or facing financial strain if they purchase a new home before selling their current one.

In scenarios where a buyer is purchasing a new home outright, has already secured financing, or desires to make a non-contingent offer, a buyer contingency addendum would not be appropriate. Purchasing outright suggests that the buyer does not need to rely on selling another property, and having financing secured means the buyer is ready to proceed without additional conditions. Making a non-contingent offer indicates a willingness to assume all risks associated with the transaction without the safety net provided by a contingency addendum.