In Real Estate there is a type of offer on a home called a back up offer. These offers are negotiated just like a regular offer, but when accepted, they fall in line behind the primary or first executed offer.
Why submit a backup offer when the home is already under contract? Well, if the first contract falls through, the back up offer becomes primary. The buyer with the accepted back up offer does not have to rebid against any other offers and moves directly to the front of the line.
For the seller, a back up offer is an insurance policy. Also, if the current buyer starts asking for more than the seller is willing to provide, they know they can let the buyer terminate and take up with the back up buyer.
If you are interested in knowing more about how back up offers can be used for a buyer or seller, give us a call.
Comments(5)