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.