What is a Backup Offer on a home?

Real Estate

What is a Backup Offer on a home?

Since our real estate market is so competitive for buyers right now, one strategy is to submit a back-up offer on a home that you like. So you've been looking for awhile and submitted several offers to purchase a home, but the seller selected a different buyer's offer. This is the point where you could consider using the strategy of a back up offer.

Last I heard about 30% of real estate contracts have been falling. Sometimes after a buyer has been successful in winning a bidding war, and the thrill of winning has worn off, they get cold feet or something happens that prevents them from getting a loan.

So it makes sense to consider putting in a back up offer if the home is one that you really like. Once the listing agent informs your buyer agent that the sellers have selected another offer, you can ask if the seller is accepting back up offers. If the seller will consider a back up offer, then you can negotiate a back up offer the same way you would negotiate a primary offer. Your agent will write up another offer with a clause that says if the primary buyer's contract falls, then you can step up to the plate with the contract you already negotiated with the seller. It's a way to increase your odds of buying a home.

Click on "Read More" at the bottom of this page to read the rest of Realtor.com's article.

Whenever you are ready, here’s some ways that I can help with your real estate goals:

1) Free Access to search the Denver MLS for all homes currently on the market: Denver Home Finder Service Property Search

2) Join me for a home tour - Home tours are Monday thru Saturday at 2:00 pm or 6:00 pm - choose your tour here

3) Request a specific search that sends all the homes that meet your parameters as soon as they come on the market - that way you can beat others to the best homes. Send me an email with "specific search" in the subject line and your wish list - Price range, school district, style, minimum number of bedrooms, etc. - Vickie@DreamsCanHappen.com

4) Receive a Home Loan Report –There are so many different loan programs. Do you need 20% down payment to purchase a home? Are there special programs for first time home buyers? What does CHFA mean? What's the difference between a FHA loan and a Conventional loan? Send me an email - - Vickie@DreamsCanHappen.com with "Home Loan Report" in subject field and I'll send it right over.

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