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What Does It Mean That We Are A Back-Up Offer?

By Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400

Real Estate Agent with The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803

May 16, 2013 09:28 PM

Suffolk County Long Island Home Buyer Asks: What Does It Mean That We Are A Back-Up Offer?

That was a question we were asked by our Buyer last week after presenting an offer on a Home in Suffolk County Long Island.

It means that another offer was made on this Suffolk County property before ours, and the owner and Realtor have decided they will accept back-up offers just in case the first offer is cancelled. In Real Estate, we never know what may happen during negotiations and so it's a good idea to continue to show a house until all contracts are signed.

After contracts are signed, the house is in full contract and in Suffolk County Long Island, the listing is then taken off the multiple listing service site.

Do You Think We Will Get The House?

We never know if the first deal is going to close. In Suffolk County Long Island,

we use Attorney's during the Real Estate process. Anything can happen. Unfortunately, many issues can arise along the way which could keep a contract and Buyer from getting to the closing table:

The buyers on the first offer may not qualify for their mortgage.
The Attorney's may not agree on one or more of the contingencies.
The house doesn't appraise for the price agreed upon.
Buyer's Remorse ~ The phenomenon when Buyers get "cold feet" and back out of the contract.
Sellers, who are emotionally attached to their house, can be inflexible and take the transaction personally and may not want to continue with the first Buyer.
Sudden change in the middle of contract and both Buyer And Seller want out of the deal.
Buyer can't close on time.
Lack of communication between all involved and the transaction is brought to a halt.

We just never know...

Sometimes things happen that is out of everyone's control. Presenting a back-up offer on the Suffolk County Long Island Home may be worth your time and effort, just in case the first-accepted offer doesn't close.

Don't go into the buying process alone, when you're ready to buy your Suffolk County Long Island Home, call Lawrence & Sheila Agranoff Cell: 631-805-4400

Search Here For Long Island Homes and Condos

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Maureen Bray Portland OR Home Stager ~ Room Solutions Staging

Room Solutions Staging, Portland OR - Portland, OR

"Staging Consultations that Sell Portland Homes"

Having the option of being a back up offer can often work to the buyer's advantage. Your post is a great explanation of the factors involved.

May 17, 2013 03:09 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Larry and Sheila,

This is a great explanation on back up offers. Wishing you both a great weekend. A

May 17, 2013 09:40 AM

Celeste "SALLY" Cheeseman

Liberty Homes - Mililani, HI

(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

YUP...you never know... Good topic and a great list of ideas of 'what could happen'. Many a time I've kept showing and received back up offers (espcially in this market!) and wouldn't you know....the buyer backed out and the back up slid right in!

May 17, 2013 09:46 AM

Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

Larry and Sheila, I have had back up offers move into first place so it may not be a waste of time at all. If the buyer really wants the property it is worth a try.

May 17, 2013 01:04 PM

Rebecca Gaujot, Realtor®

Lewisburg, WV

Lewisburg WV, the go to agent for all real estate

You just never, never know! I had one where it did not close, although the buyers had great credit, money in the bank....but just before closing ...financing..what...well the buyers had cosigned on a loan for a family member and they stopped making payments...just never know and backups are good to have.

May 17, 2013 01:32 PM

Jane Chaulklin-Schott

TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL

TeamConnect Luxury Homes - Orlando, Florida, 32836

Sheila and Larry, you list many good reasons why a back up offer can be a good plan and has a chance to go to contract. This works with certain types of buyers who really want the property and have time and patience to wait out an outcome - good or bad. Good reminder post.

May 17, 2013 01:47 PM

Laura Cerrano

Feng Shui Manhattan Long Island - Locust Valley, NY

Certified Feng Shui Expert, Speaker & Researcher

Backups are good. The key for me is not to move forward from a place of fear, but hope, right? Great luck and full blessings!

Love and light,

Laura

May 17, 2013 01:51 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Great explanation! I've seen a lot of back-up offers become primary over the years. More than one homebuyer has ended up with the dream home they once felt they had only a slim chance of purchasing.

May 17, 2013 02:27 PM

Cheryl Ritchie

RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD

Southern Maryland 301-980-7566

That's a good list of all the things that can go wrong with Plan A.

May 17, 2013 03:30 PM

Aaron Hofmann

Atlanta Communities - Smyrna, GA

aka Mr. Smyrna Vinings

As a general rule, it's highly unlikely that you will ended up buying the property in a back-up offer situation. But you never know. And in Georgia, it's pretty easy to submit a backup offer and if you find something else that you'd like before your backup becomes primary, then just terminate the backup.

May 17, 2013 07:53 PM

Amanda Christiansen

Christiansen Group Realty (260)704-0843 - Fort Wayne, IN

Christiansen Group Realty

Very good explanation Larry and Sheila. The odds of a backup offer getting accepted are usually slim to none, but you never know. Great post!

May 17, 2013 09:04 PM

Fernando Herboso - Associate Broker MD, & VA

Maxus Realty Group of Samson Properties - Clarksburg, MD

301-246-0001 Serving Maryland, DC and Northern VA

Another great reason to use an experienced real estate agent to buy a house. .your possibilities are endless!

May 17, 2013 09:29 PM

Tracy Oliva

West USA Realty - Arizona - Fountain Hills, AZ

The Oliva Team Arizona Agents

Good Morning: How true this all is, Great Info for all in the business, keep up the good work and good luck with your sales, E

May 17, 2013 10:33 PM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Larry and Sheila, in my experience most buyers won't put in a backup offer. However, they want to be called if the deal falls through. What they don't realize, the backup offer always gets first consideration. Good Post!

May 17, 2013 11:29 PM

Brad MacKenzie

Brad MacKenzie - Duxbury, MA

Turning Houses into Homes on the South Shore

Good communication points. Sounds like you can keep your clients well-informed and as calm as possible.

May 18, 2013 01:16 AM

Bryan Robertson

Los Altos, CA

If a buyer wants a specific home enough, being in backup is just fine. Even cash buyers back out from time to time and that means whoever is in second place gets the home.

May 18, 2013 01:52 AM

Melanie Narducci

Hillscape Properties, Inc. - San Francisco, CA

Your San FranciscoBay Area Real Estate Expert

Great post, Larry and Sheila! Timing is everything in life and real estate.

May 18, 2013 02:00 AM

Richard Iarossi

Coldwell Banker Residential Brokerage - Crofton, MD

Crofton MD Real Estate, Annapolis MD Real Estate

Larry and Sheila,

I find that there are many buyers out there who just don't like to be in second place. If they know there is a contract on a house...next.

Rich

May 18, 2013 02:41 AM

Michael Blue

Home Smart Realty West - Encinitas, CA

REALTOR - 760-889-8877, Encinitas/Carlsbad

In todays market in San Diego that means 10 back up offers, not to warm and fuzzy for the back up buyers.

May 18, 2013 03:08 AM

Team Honeycutt

Allen Tate - Concord, NC

Good blog on back-up offfers. I would love to have a back up offer on all of our listings but unfortunately we don't get many back up offers in this area.

Betty

May 18, 2013 04:25 AM