When a property is marked “under contract,” should you put in a backup offer? Does it make sense to put in backup offers? The answer depends.
As I explained in a related video, there’s a difference between a property that’s contingent and one that’s pending. If a property is contingent, it means there are contingencies the buyer has in place over things like repairs, inspections, the loan processing, etc. It’s entirely possible in North Carolina that the deal could fall apart during the due diligence period.
If you absolutely love the property but missed out on it the first time, you should strongly consider writing a backup offer. Backup offers are a win-win for sellers because it means they can sell to you or the buyer who’s currently under contract. It also gives them leverage to terminate the contract of the other buyer if they change their mind and prefer to sell to you.
They can say no to everything the buyer requests, and if the buyer accepts their terms anyway, they’ll get the house. If the buyer doesn’t agree to the seller’s terms and terminates the contract, though, your backup offer is ready and waiting to buy the house.
What strategy should you have when writing a backup offer? As a listing agent who’s received numerous backup offers over the years, I’m always surprised to see ones that aren’t strong. You have to give the seller a reason to want to accept your backup offer. The best thing you can do is heed the advice of your buyer’s agent because they’ll know how well the property is priced.
The bottom line is, you want to make your backup offer strong and put your best foot forward.
As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.