I'm typically not a huge fan of writing back-up offers because I consider the odds of moving into primary position a bit slim and it keeps my clients in suspense for an extended time.
If I'm the seller's agent, I consider a back-up offer a great piece of leverage. The buyer starts making too many demands and you can drop the "we've got a back-up offer" card. The buyer either backs off, or quits entirely and my seller can go to the back-up offer, which is most likely as good or better than the initial offer.
So if I'm the buyer's agent, I know that's happening. And I also know the seller has very few options to move from the primary offer to the back-up offer. Basically the buyer has to fail to perform in some way: not provide the earnest money, not provide the preapproval letter, fail in their financing, etc.
And while unlikely to have the buyer fail to perform, it DOES happen.
Today was one of those days. The buyers who wrote on Day 1 of a Loveland condo on the market beat my buyers who couldn't tour until Day 2. And despite writing an extremely strong offer, it was just a bit too late as the other offer was accepted just before our tour.
But my buyers were willing to give the offer a little time to happen (or not) so they agreed to be in back-up status for about a week.
And sure enough, it paid off for them. The buyer didn't perform per the contract and the sellers were able to switch to my buyers.
The prize for the wait? A great 2 bedroom and study condo of almost 1500 square feet with lots of updates! It's move-in ready and that's very appealing. And another great perk? Elevators are rare in 3 story condos in our market, but this building has one, so buying a 2nd floor condo is just as convenient as a ranch design!
Closing will be before the end of the month thanks to the streamlined process that comes with a cash purchase!
Need help buying or selling a home in Greater Cincinnati? Just give us a call at 513-520-5305 or email Liz@LizSpear.com.
Serving Greater Cincinnati home buyers and sellers,
Bill & Liz aka BLiz