6 Things to Know When Submitting a Backup Offer
In today’s rapidly-moving real estate market, the house you want may already have an offer on it.
If that’s the case, you should consider submitting a backup offer.
6 Things to Know When Submitting a Backup Offer
A backup offer positions you as the first (or second, or even third) runner-up in case the original offer falls through.
A backup offer can be accepted or rejected just like a regular offer.
The original offer can fall through for a number of reasons: buyer financing, inspections, low appraisals, etc.
If the original offer falls through, your backup offer will automatically kick in, without the house going back on the market (you won’t have to compete against other buyers again).
Your chances are best if you’re the first backup offer (but if you really love the house, you should still submit, even if you’re second or third).
You can cancel your backup offer after it’s accepted (say, if you find another house you want to buy).
While it may seem unlikely that the original offer falls through, it happens more often that you’d think. And people have had success getting their dream house when they’ve been the second, third, or even fourth backup. As a seller, this is also why it’s beneficial to take a backup offer, even if the first offer seems secure.
Final Words of Advice: Patience is Key
Patience is key when you’re a backup offer. You may have to wait for the original buyers to move through their escrow process while you sit on the sidelines. That’s why it’s important to find out what the contingencies are for the original offer, that way, you’ll have an idea of the timeline you’re working with.
As your agent, I can help you sort all this out. If you have questions about real estate in Los Angeles, please reach out.