Is the house you’re in love with already under contract? Are you wondering if you would make a backup offer or if it is a waste of time?
So long you would be the first backup offer in position should the current cancel, I would tell you to go ahead and put in a backup offer. Generally, if you’re the second person in line, you might very well end up buying that home.
Given the scarcity of homes available for sale, there has been an increase in home buyer competition. Have a backup offer on a property you want is not a bad idea. Say the seller has already accepted another offer, that first offer is most likely a contingent contract, which means a certain number of events have to happen to close. Contracts are contingent upon a number of items including the home inspection, financing, a termite inspection.
If any one of those situations hit a snag, the transaction might cancel. If the transaction cancels and you have a backup offer agreement with the seller, then you are automatically in contract with the seller. If you find a home that you love and the seller has just excepted another offer it may be worth your while to submit a backup offer while you continue your search.
The only downside you may want to think about when submitting a backup offer is that it could further motivate the current buyers. If the first buyers find out there is a backup offer they are likely to buckle down and be sure they don’t slip up to ensure they won’t lose the home. In this case, you are likely to get the home only if the first buyers are actually unqualified, get cold feet, have a bad event in their lives or perhaps find out something is wrong with the home that they are not satisfied with.
Tips for making a backup offer:
- Make it strong.
- Be competitive.
- Make it stand out.
- Make it personal.
Make a great offer and tell the buyers about yourselves, why you want to live there, and why you love the home. The more they love you and your offer, the more likely they will want to work with you.