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51 Comments on Protecting the Seller’s Best Interests With BACK UP OFFERS
Getting backup offers is a sure sign that the market is improving. It was not too long ago that it was tough to get any offer at all, let alone a backup offer.
Looking into my crystal ball, I predict that we are in the beginning stages of a new bubble, unless of course the Donald is wrong.
But on the other hand . . .
Back-up offers are rare in my area. Most buyers want to move on to a home that they CAN buy.
We don't see back-up offers in my area much. Most buyers move on and find something else - our inventory is still high although homes priced well in the lower price ranges are selling quickly and sometimes with multiple offers. I have a listing now where the buyers have asked for an extension and we thought we were closing this week and there are still conditions. My sellers are freaking out and I'm wishing we had a back-up offer.
This house sold quickly but it showed well with the furniture and staging advice the seller's paid for. They are moving out and it will then be a vacant home and might not look as nice. I'm hoping we close shortly and I wish back-up offers were more prevalent here.
Hi Sally, I agree with the idea of getting backup offers. But in our MLS as soon as you "pend" a listing it gets no more showings. And this is a real issue with short sales as often as they fall through.
@ Terry: I believe it benefits BOTH buyer and seller in a lot of cases. All circumstances will depend on each of our local area real esate markets and of course the situation of the specific property itself. In this particular area of the property...we had lots of activity...but only two offers. The back up offer came in about 2.5 weeks after the first one was in contract. Because of personal circumstances ...I knew the buyers were serious and would hang on should the first fall out. It may not always be the situation although in this case it benefit both sides and when the first one fell out...this one immediately started. If we do our homework then we KNOW..that no matter what ...a back up offer is certainly better than none at all.
Your best bet is to always keep in contact with the second best offer, just in case. Truth is that you just never know if a buyer will do something to their credit prior to buying the home which now prevents them from qualifying. We have certainly seen it where we tell the buyer not to do ANYTHING until the transaction is complete... but they get excited and buy furniture. The new inquiry, added debt, and slightly lower FICO may drop them below 620 which pushes them out of being qualified. Good idea to keep the backup offer. Im sure it helped make your vacation a little more restful.
Backup offers can save the day as long as they are realistic. In short sales, we get them all the time, just in case.
Sally, congrats on keeping the Seller happy. Back up offers are a great plan B.
Sounds great. I like it when the escrow officers do all the work.
Sally I don't know if we are in Back Up Offers here in Connecticut yet, but I am seeing more multiple offers, which to me indicates that the market maybe changing.
Hi Sally, Great topic. Back up ofers are always a good idea if you can get them.
I always accept backup offers.
I would always accept backups also. Our market here is going back to that type of situation as inventory dwindles.
Looks like the majority of us believe back up offers are better than none at all... Also, two is better than one...or none too for that matter lol!
You all have a great rest of the week!
Sally:
Taking back-up offers on a property is just a prudent move. Even though a buyer seems to be gold, you never know what will happen. If for some reason the escrow falls through having an offer that can move in first position will shorten the delay in closing.
Backup offers are a good strategy for both buyers and sellers. Deals do fall through and buyers in backup can certainly benefit when they do - thanks for sharing.
Great job getting the home sold--it can be tough if there isn't a back up offer in place to fall back on!
Backup offers are great but here the buyer often requests that NO backup offers can be accepted. It is an option available on our contracts. A simple check of the right box and it is done.
I never understand why some agents and sellers don't want to accept backup offers. It's also in a buyers best interest to put in a back up offer if they like the house because a lot of times there are people circling waiting for that first offer to go away and once it does the home comes back on the market and bunches of buyers may try to get in on it, but if a buyer already has a back up accepted, voila, into first position. Everyone is happy. -Kasey
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