Buyers in Backup . . . What Portland Real Estate Buyers Should Know

Well said Carla.  It isn't always a bad place to be for a potential buyer.  Patience is sometimes rewarded.

Carla, all the back up buyer does is to make the original buyer want the place even more!  It's a great tool for the sellers to use for the guys in primary position - to hold their feet to the fire! 

With our standard contract giving any buyer a period for inspection and rejection the backup buyer always has an out. So there's no risk and sometimes, as Paula McDonald said, their patience is rewarded!

Hi Carla Muss-Jacobs, Principal Broker/Owner ... Our markets are so similar. Every broker I've talked to recently the topic of backup offers comes up. And I've seen PENDINGs move to the next one in line...

In certain price ranges, back up offers are fairly common in my market.  I had a recent listing that went pending within 24 hours, we put a buyer on a back up contract a few days later.  We are closing with the primary buyer tomorrow but having the back up in place is to everyone's benefit and I can easily see the patience being rewarded often enough to be worthwhile.

I had a listing agent earlier this spring give the impression the primary offer was waivering and encouraged a backup offer.  We wrote one however, it kept the primary buyer on their toes to perform.  I agree with Patricia Kennedy , it works to keep the primary moving forward.

We've had more falling out lately than I ever remember, so backup buyers are lining up because smart agents are asking listing agents questions.

Carla Muss-Jacobs, Principal Broker/Owner  - we don't have a status of back up buyer - however, the listing becomes contingent means seller has accepted offer and is okay to show the home for back up.

And it is okay to be a back up buyer now-a-days...

Good morning Carla. We have done a number of mortgages for folks that were in a back up status, but most that have a back up agreement usually don't end up with the property.

When someone is gaining on you, you run faster...yes?

Carla, This is good information for home buyers in Portland. They should call you to be their buyer agent.

Being in a back up position can work out very well for prepared buyers.  I've heard of a number of local sales lately that have fallen out on financing.

This year the offers are high but the buyers seem to have little patience often give seller a few hours or a or two and ran.

Hi Carla Muss-Jacobs, Principal Broker/Owner ,  We see backup offers a lot around here in Indiana.  Many of the offers don't work out for them though.

Our MLS state "Active Contingent" when the current buyer has not yet removed all contingencies.  When he or she has it goes to "Pending" in which case it will close soon.  As long as a listing is not "Pending" anything can happen and a back up buyer my end up with the opportunity to get the property.

**Full disclosure - - duplicate reply.  Since posts/concepts are becoming more and more commonly repeated, I guess, I have also run out of things to say in response **

This is how I answered a similar post to Joni Staples:

In MA, a seller is not obligated to obtain back up offers and the listing agent is not required to market a listed property under the REALTOR COE once an offer has been accepted, unless requested to do so by the seller.  I've seen situations where the seller wishes they had taken back up offers and others where the buyer's wish they hadn't.  Unless they are carefully written (by an attorney) - these can become binding contracts if the other deal falls through.  Your buyer client may not be able renegotiate terms or price because of any defects found by a previous buyer or lender.. or worse yet, the buyer decides they no longer want the house!!! Caveat Emptor.  And have plenty of E&O coverage if you recommend to your client to make a back up and it becomes binding and if it (unfortunately) goes bad!

Carla,  I've put many buyers into contract by being in back up position.

Hi Carla.  We've always had the option to make a backup offer or to accept them (if I'm listing agent), but it was actually more formalized in the MLS during the height of the short sale boom.

We do not use the back up offer option often. It keeps the buyer unsettled and not knowing what will happen. They would rather move on and find another property.