Back up Offer Closed - In this Real Estate Market Anything Can Happen - We Encourage our Sellers to keep showing their Property!

I just had a back offer go through as well.  I love it because we had an offer on a home that was contigent upon us selling ours. 

What really gets me is when tha agents put up a pending sign immediately before the inspection process or worse yet a sold sign!  It really isn't in the sellers best interest at all...I have also attempted to schedule a showing for a home just under contract only to have both the seller and agent tell me they just don't want showings....go figure..

I'll always encourage my clients to write a back up offer on a short sale property they like, because it's very likely the original buyer will walk.

I use the same practice. I always urge sellers to take a back-up offer. You never know what will happen these days!

You better believe it.  Ours will remain "Active with Contract", bring on the offers.  I had one exactly like you stated here.  You never know what can happen!   

Grace,  I love our Active B for Active taking backups status.  It is beneficial to clients, and it sounds like it worked very well for your clients.  Great advice to them!

Hi Jeff,  As long as potential buyers are aware that there is  an accepted offer I don't hesitate to allow additinal showings.

Great post! I agree and more so now with the bank requirements. As a listing agent, when I receive and offer, I write in the contract that all parties agree to keep the property in Active Status in the MlS until all contigenties are removed. This keeps the selling agent and buyers on top of things as well as protecting the seller in hopes of backup contracts.

In representing a seller, having back-up offers is a wonderful thing.  It puts pressure to perform on the original buyer and provides a waiting list in case that original deal falls apart. 

However, for a buyer, I'm not so sure there is a benefit to being in the queue.  First of all, if the first deal falls apart, there may very well be a solid reason why...and even if disclosed, that may place the property in a "damaged goods" scenario which would not merit the previous price.  Secondly, if time has passed in the current market, there very well may be a different valuation based on price movement in the market or new competition. 

My recommendation to buying clients is to allow me to notify the listing agent that my buyer has a strong interest in the property and would like to be notified if the status changes, but not to formally write a back up offer. 

Of course, in some distressed sale circumstances, where there is a long list of ready, willing and able buyers, and there is a high probability that the original deal will fall apart, it may be a good idea to try to get to the top of the list.

I agree, it is not a done deal until title changes and with short sales taking so long, that a backup offer has a good chance of closing.

In our MLS the days on the market continues to grow so it is not worth it given the fact that most agent will not show a property that is BUP anyway.

In our MLS the days on the market continues to grow so it is not worth it given the fact that most agent will not show a property that is BUP anyway.

Our MLS rules say that once a contract is accepted the listing has to go pending within 24 hours and good luck on even a showing let alone a backup. I don't agree but the rules are the rules.

Doing this very same thing on a property i have listed. The seller asked me why as we have an offer into the bank. My answer to her was things can go crazy at any time. We need to be prepared for the worst and hope for the best.