However, if a sale is listed as accepting backup offers, that usually means that there have been hiccups in the process and that the seller is actively looking for alternatives since the previous offer looks likely to fall through. This sale status indicates that nothing seems to be wrong with the current offer but that the seller is covering their bases by accepting backup offers. There’s often some confusion when it comes to backup offers and the different phases of a home sale.Ī home sale that’s pending usually means that the seller is already working with a potential buyer but may accept backup offers if they are made. That’s important because it means making a backup offer can reduce the odds that the first offer will fall through and that the house will go back on the market. The other thing to consider is that making a backup offer can sometimes rush the first offer and make it more likely that they’ll close on the house quickly and without asking for as much from the seller. A Backup Offer Can Motivate the First Offer to Close Thankfully most sellers are willing to return the majority of the earnest money to buyers. If you do decide to move forward and break the contract on a backup offer, you may have to give up part of your earnest money in payment. A backup offer is a binding contract, which you’ll have to formally withdraw before you can make an offer on a different home. Of course, if you continue shopping for a home after making a backup offer on a different house, you may have difficulties. Paying out earnest money may hurt your position if you decide to make offers on a different home in the meantime. The main consideration when making a backup offer is that the seller may ask for earnest money to guarantee that they will accept your offer if their current offer falls through. hash-mark Things to Consider When Making a Backup Offer 1. Making a backup offer is relatively simple, but there are a few things you should consider before you decide to move forward with a backup offer. Sellers are more likely to accept a good backup offer than to reject it, partially because it gives them more leverage in negotiations and partly because it helps guarantee they’ll sell the home quickly even if the first offer falls through. Your realtor will then approach the seller with the offer, which can be accepted or rejected. If your offer is rejected, either because the seller was already considering another offer or because your offer was outbid, you can ask to submit a backup offer. The process is relatively simple if you’re working with an experienced realtor. Most buyers don’t make backup offers and making one can improve the odds that you’ll be able to buy a home. hash-mark How Does a Buyer Make a Backup Offer On A House? If they ask for too many repairs or changes after an inspection, for instance, the seller can choose to walk away knowing that they have a second offer in place. Īccepting a backup offer is also a good way to get leverage in negotiations with the person making the original offer. hash-mark What Does Accepting a Backup Offer Mean?Īccepting a backup offer means that the seller already has one offer that they are considering or have already accepted for the home but that you’re willing to guarantee that you’ll accept the offer from a second buyer if the first offer falls through.Įssentially, this is an offer acceptance just in case. It’s worth noting that sellers can ask for earnest money deposits if they choose to accept a backup offer to help prove that buyers are seriously interested in the property. When a home seller accepts a backup offer, they’re saying that this person will be considered to buy their home next if the person who made the first offer is unable to buy the home for any reason. Accepting Backup Offers Accepting Backup Offers Bottom Line hash-mark What Is a Backup Offer?Ī backup offer is a chance for sellers to consider the offer from a second buyer and an opportunity for buyers who weren’t as quick or competitive as the first offer to have a chance at buying a house. What Is a Backup Offer? What Does Accepting a Backup Offer Mean? How Does a Buyer Make a Backup Offer On A House? Things to Consider When Making a Backup Offer Pending vs. But you need to know how this process works if you want to be successful in accepting a backup offer on your home. For one thing, the best offer might not always follow through, which can leave sellers in a lurch if they don’t already have a backup offer in place.īackup offers are an excellent way to make sure you’ll be able to sell your home even if the first offer doesn’t go through. That’s fantastic news if you’re looking to sell quickly, but there are some complications. Home sellers often get several offers at once.
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