How often have we shown a property to a potential buyer only to learn later that it has just been sold conditionally. Your buyers are devastated because they LOVE this house!
It could also happen when selling commercial property, or if you have a buyer interested in buying a business that is not listed.
I have been in this situation numerous times when my buyers have been devastated when the home they MUST HAVE has been sold. This can occur frequently, especially in a busy market. I'm not sure this strategy of submitting a backup offer will work work in this crazy time in real estate, but several years ago it was something to consider.
But as we realtors all know, a conditional offer can fall apart. If my client really LOVES the home, I sometimes suggest they consider submitting a “backup offer.” This “backup offer” would contain the normal conditions, such as financing and inspection, but it would also include another condition, “Conditional upon the existing accepted offer becoming null and void, and the mutual release being signed by all parties involved." The “backup” offer would then take precedence. The other Buyer agent would usually not have any knowledge of this (unless the listing agent revealed this to them) in the event the original buyer required an extension to satisfy their conditions.
I had this happen when I had a buyer looking to buy a Second Cup coffee shop, but there were none for sale at the time. I got the yellow pages out and called each and every Second Cup within a 20 mile radius and found one where the owner wanted to sell. Of course he didn’t believe me as he presumed I was just another agent making cold calls, who didn’t really have a buyer.
I found his home address and went and knocked on his door. Needless to say he was surprised to see me. He informed me he had just received an offer for his coffee shop from another agent. I asked him to please NOT touch it or sign it back, as I would also be coming with an offer the next day as my clients were away and arriving home the next day.
The next evening I showed up at his door with a signed offer. Well, guess what? He had signed the offer back to the Buyer, which was ultimately accepted! I asked him why he did that and he told me outright that he didn’t believe me!!!
I recognized that Offers for businesses were much more detailed than in a residential offer, and there were many clauses in the offer that could be difficult to meet. I suggested that my buyers submit a BACKUP OFFER conditional upon the first offer, which had been accepted, falling apart and after that both parties had signed a mutual release.
The first offer died a few weeks later… and my offer took precedence! My clients met all the conditions in the offer within the time frame and became owners of their coffee shop!
Needless to say my clients were very happy…… and I felt very good about getting the job done for them! Never rule out the possibility of a backup offer… they can work!!
I live and work in STREETSVILLE and have a vested interest in property values here. Are you considering buying or selling or know anyone who is? Give me a call to see how my marketing plan get can our home sold! (416) 717-6331.
When you choose me to handle your real estate needs, you are choosing a real estate professional who cares about you and your family, and who will listen to your needs, work together with you, and protecting your interests to achieve your objectives.