Buyer Question: What Does It Mean to be a "Backup Offer"?

By
Real Estate Agent with Cedar Rapids/Iowa City, IA KW Legacy Group S44645

Buyer Question: What Does It Mean to be a "Backup Offer"?

 

Buyer question: I called to see a home and was told that the seller is accepting backup offers.  What does this mean?

 

people lined up on the street

 

There are several reasons that a seller may be willing to continue to show their home after an offer is accepted. 

 

1.  The accepted offer is contingent on financing through FHA or VA.  This means that there could be additional inspections and repairs required of the seller in order for the buyers to obtain financing.  The seller may be thinking that they could get a conventional offer that will not have these repairs required.

 

2. The accepted offer is contingent on inspections.  The seller may be nervous about what the buyers may find and based on the agreed upon price, the seller may not want to make the repairs requested. 

 

3. The property is vacant or it has only been on the market for a couple of days so the listing agent has left the property on the market to pressure the accepted buyers to move forward.  Meaning that if there is another offer accepted as a backup, the sellers can say no to any requests by the first buyer and cancel their contract to move forward with the second buyers.

 

Are there advantages to being a backup offer?  That depends on your situation.  You are late to the party.  But if you really love the home, and you are willing to wait for the 10 day inspection period, it might be worth it!  After all, if the first buyers have issues with their financing or if there are too many requests upon inspection, the house could be yours!

 

But don't get your hopes up!  The seller and the listing agent may just be using you and your offer as leverage to encourage the first buyers to move forward.  That has happened to several buyers that I have represented over the years. 

 

If you are looking to purchase a home this Spring in the Cedar Rapids/Iowa City Corridor, give me a call to set up a free homebuyer consultation.  I would love to assist you!

 

Keep smiling!

 

Karen

Posted by

 

Karen Feltman, REALTOR®, ABR, AHS, CHMS,                                                                      CNE,CRS, e-Pro, green, GRI, SRES, TRC

Keller Williams Legacy Group

4850 Armar Drive SE Ste B

Cedar Rapids, Iowa 52403

Email: karenfeltman@gmail.com

Mobile  319-521-0701

www.KarenFeltman.com

Licensed in the State of Iowa

© 2010-2018 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist 

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Topic:
Home Buying
Location:
Iowa Linn County Cedar Rapids
Groups:
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Tags:
cedar rapids real estate
backup offers
home buyer representation
cedar rapids home for sale
cedar rapids home buyers
karen feltman
lepickroeger realtors

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Rainmaker
3,978,839
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Especially the first week being a backup could be a good thing.  After a week seldom  issues stop the deal

Apr 04, 2018 02:04 PM #1
Rainmaker
1,415,102
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

There are all sorts of reasons deals could die, and backup offers could (and do) wind up with the house in the end.

Apr 05, 2018 03:23 AM #2
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Rainmaker
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Karen Feltman

Relocation Specialist in Cedar Rapids, Iowa
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