Back Up To Move Forward

By
Real Estate Agent with United Real Estate TX #0552717

It's a tough market out there, especially for buyers. Shortage of inventory and lots of buyer demand are driving prices up, creating crazy competition, and wearing out both clients and their agents.

So how do you get a buyer into a home these days? Back up!

I recently had buyer clients come to me through a referral from an agent in the city where they currently live. Their two 20-something kids are living in the Dallas area and both kids are renting.  Both are facing high rent increases. Mom and Dad decided to buy a house for them to share. Nice deal!

We looked at scores of homes - some condos, some townhomes, some single family houses and many offers were written. These were really good offers - well over list price. Although they were financing, they understood the need for appraisal waivers. And since the parents were not just pre-approved, but fully approved for a loan by an underwriter, their offers were about just as good as cash. But we were always the bridesmaid and never the bride.

We were asked by three sellers who chose other offers to submit backup offers so that if something happened with the primary buyers under contract, we could immediately assume that primary position without having to resubmit an offer and again compete with other buyers. So we did!

And finally, here comes the bride! One primary buyer was unable to secure his loan at the last minute. My buyers were FINALLY under contract. They closed on the house last week and will be able to move in before the kids' rentals run out.

The moral of the story: don't turn down an opportunity to submit a backup contract. It may be the fastest way to buy a home these days.

 

Posted by

Lorrie Semler, REALTOR
United Real Estate Dallas

Serving your residential real estate needs in Dallas, TX and all the surrounding suburbs


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Comments (11)

Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Lorrie- congrats to your client/buyers and to you!!! You never know what's going to happen so why not submit a backup offer. 

Jun 03, 2022 05:57 PM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Kathy Streib Exactly! You can't win if you're not in the game!

Jun 04, 2022 07:53 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

In a market of overbidding and then buyers expecting a seller to fix and/or repair every little thing as well as deals not appraising or just not making it to the end ... backup is a smart position to take for any serious buyer.  I have won my share of offers in backup position and my buyers when from secondary to primary due to a myriad of reasons.  Great advice!  Great Blog.  Thank you.

Jun 03, 2022 06:52 PM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Diana Dahlberg Thanks! In today's market, it may be the only way to get a home.

Jun 04, 2022 07:54 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

I have always been a believer of Back Up offers over the past 27 Years not just now and I have a handful of buyers who thank me for talking them into it, because now they are home owners Endre

Jun 03, 2022 11:18 PM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Endre Barath, Jr. You are so right! My buyers were about to give up and have their kids sign new leases. I'm so glad they hung in there. And they are, too.

Jun 04, 2022 07:55 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Lorrie - success and some smiles can be the result of a back offer.  Congratulations on this real life real estate story that buyers need to be reminded during challenging times.  

Jun 04, 2022 04:53 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Michael Jacobs Thanks! Challenging times call for thinking outside the box.

Jun 04, 2022 07:56 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Yes, backup offers can be the one that winds up with the home. There is nothing wrong with submitting a back-up offer!

Jun 04, 2022 05:35 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Kat Palmiotti You are correct - there's nothing wrong with submitting a backup offer. There is NO stigma attached.

Jun 04, 2022 07:57 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very smart advice!  Great story as well.  You never know what might happen so it's best to be prepared and put in a back up offer as your BEST offer.  Great post!

Jun 04, 2022 11:36 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Jan Green Thanks!


 

Jun 05, 2022 07:37 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Great example, Lorrie, of why backup offers can be a good option. Thanks for sharing!

Jun 04, 2022 11:47 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Carol Williams Great to hear from you. Thanks!

Jun 05, 2022 07:38 AM
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

Absolutely! I had this happen to one of my buyers last month!

Jun 05, 2022 09:21 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Anne Corbin It's just about the only way to get buyers into homes these days.

Jun 05, 2022 04:31 PM
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824

Congratulations on getting them to the alter Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417 !

Jun 05, 2022 01:23 PM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Elyse Berman, PA I love it! I usually tell my clients I'll be at the closing because I'm not just going to get them to the goal line, but into the end zone.

Jun 05, 2022 04:29 PM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Lorrie you gave them excellent advice to submit a backup offer.  Why not?  Here in AZ buyers can do so and they can also back out before it goes into 1st position should another home come along.   Congratulations!  Excellent job!

Jun 05, 2022 04:08 PM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Anna Banana Kruchten CRS, Phoenix Broker Same here. They backed out of the other two backup positions when they became primary. Thanks!

Jun 05, 2022 04:31 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lorrie, congratulations and submitted a back-up offer has worked for a couple of my buyers too.  

Jun 09, 2022 06:00 AM