Backup Offers: What They Are and How They Work

As we all know, the home buying experience can lengthy and longwinded. Rightfully so, however, as purchasing a new home is something worth waiting, saving, and hunting for – not to mention something worth spending an allotted amount of time perfecting. But what happens if your search has lead you to the home you’ve been waiting for – the home of your dreams! – and it’s already been snatched up by another buyer? You may feel defeated, discouraged, wondering if you’ll ever find another home like that one again. Sound familiar? Well, before you nod your heads in agreeance, don’t! Not all hope is lost, folks! Introducing something called the backup offer: the long shot that could pan out.

Sure, we may ask ourselves if the motion to submit an offer on a home that’s already in someone else’s possession really worth it? And the answer is yes. Let’s break it down, shall we? As a homebuyer, you simply make an offer on the impending home, just as you would if you were the first ones to do so – negotiate with the sellers, file the paperwork, and so on. Step two is the waiting game, which might be a little stress-provoking, we’ll agree. But, if the first deal falls through for any reason, you’re next in line to get the home you’ve been waiting for. Needless to say, the backup offer is quite reasonably an encouraging option.

So what are the benefits of going through with this type of offer? A few things to keep in mind:

Deals fall through for all sorts of reasons more often than you may think. All it takes is one of those reasons to occur, and just like that, you’re next time line to becoming a homeowner.
If this truly is the home you’ve been anticipating for weeks, months – years, even – and it’s located in an area where the market is rather competitive, you don’t want to have to see it relisted. This will not only lead to further competition among other interested homebuyers, but will lead to the aforementioned stress-provoking waiting game to once again ensue.
If the original deal does, in fact, fall through (referring back to point A), make sure you know why. Now that you’re in the driver’s seat, you have full reigns to ask the right questions, execute a second home inspection (be sure to include this contingency in your contract, of course) and so on. This way, if something happens to turn you off about the home, you can walk.

Buying a new home is something that excites us all. And although the process itself may seem hectic at times, our advice to you is to enjoy every minute of its (unpredictable) course. Make sure to do your due diligence, and trust your realtor as there is always something new and informative to learn about that you may not have otherwise known about!

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Source: Blog