Special offer

Back-Up Offer ~ Ever Considered One?

By
Real Estate Agent with Keller Williams Heritage Realty

In Central Florida, there are nearly 10,000 properties under contract each month. While some might say those are “good” numbers to have, in order to get a true picture of the real estate market, it’s best to look at how many closed sales there are each month as well.

 

The Orlando Regional REALTOR Association distributes a summary of the prior month’s activity called the “Market Pulse” each month which shares the number of active listings, homes under contract, average days on market and the number of closed properties.

 

While it’s encouraging to see that nearly the same number of homes are “under contract or pending” as are actively on the market, it’s not so encouraging to see that only about 25% of the homes are closing each month.

 

There are several reasons for this such as buyers submitting multiple offers on homes but only closing on one, or lenders taking months to approve a short sale and then the Buyer’s financing falls apart, but regardless of the reasons, it begs the question: Are there benefits of a back-up offer?

 

From my point of view (as a Buyer’s Agent), since 3 out of 4 homes are NOT closing each month, why not consider putting in a back-up offer if it’s on a home that the Buyer likes and there is reason to believe it may not close with the first-position Buyer?

 

While some agents only want to show homes “actively” for sale, there is enough evidence to suggest that there is lots of inventory that may be a better fit for the Buyer and it’s worth pursuing a back-up offer in some cases.

 

Determining WHEN it’s worth pursuing is for another post! Subscribe here to get the follow up to this topic!

 

Happy Buying!

Posted by

 

Direct: (321) 377-0157, LaShawn@YourHomeOurPriority.com Certified Distressed Property Expert (CDPE), Accredited Luxury Home Specialist (ALHS)  & THREE-YEAR Five Star "Best In Client Satisfaction" Award Winner! Click HERE to visit MY WEBSITE!  

Priority One Homes Team @ Keller Williams Heritage, Offices in Lake Mary, Longwood & Downtown Orlando, Florida

SEARCH MLS HERE for CENTRAL FLORIDA Resales, Foreclosures, Short Sales, New Homes, Condos, Townhomes & More.

Should you or someone you know be interested in buying or selling Real Estate in Central Florida, I'd love to earn the business! I am never too busy for referrals!

 

 

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

LaShawn - it is a good question. I think the way our MLS operates, whenever it goes into "Contingent" status, we are no longer even looking at the properties. It is still a good market, and there is still some inventory, so I can understand when agent prefer to move to another listing rather than have less than good chance of getting the property

Nov 07, 2011 01:31 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

LaShawn:  The success, or even the advisability of making a back-up offer usually depends on the  quality or the "hotness" of the local real estate market.  The Fort Worth market I work in is pretty active right now, and has not really been anywhere near as affected as other market areas by all the Short Sales.  So... I try very hard to never show any home to any buyer... which is already under contract.  Putting in a back-up offer here in FW... is a tactic that usually leads to failure, and really angry buyers.

Nov 07, 2011 01:32 PM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

As with any market, the role of a Buyer's Agent is to educate and advise the customer. If your market doesn't have an excess number of sales falling through each month, then submitting a back-up offer might not be the best use of your time or in the best interest of your customer.

Rest assured, this post was not meant to cause a stir... but only to share that a back-up offer might be an option for your customer and can make you look like a hero if you actually do submit one on a property they end up buying!

Nov 07, 2011 01:57 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

I don't think your post will cause a "stir."  There may be many markets where once an offer is accepted on a home... that the likelihood of it falling out may be fairly high.  It would be in those market areas where a back-up offer may make more sense.

Nov 07, 2011 04:05 PM
Peter Mohylsky, Destin BeachPro
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

This is an old post but my two cents is that I would rather move on to a new property than wait for a property with a back up offer.  Guaranteed your buyer is still looking for other options. 

Mar 21, 2016 07:28 PM