Should you do a back up offer?

In today’s current market of more Buyers than Sellers, you will find that Sellers are presented with multiple offers on their property. The Seller must then pick one offer to deal with……. or do they?

Just last week, I represented Buyers who were competing with another offer on a property. As usual, I did my research on the value of the property, I discussed with the Buyers an offer that they were comfortable with, and they then put their best foot forward. Unfortunately, we did not come out the winners and the Seller decided to go with the other offer.

At this point, we had two options:

1. See if the Seller would consider our offer as a “Back Up Offer”. In other words, if the original accepted offer did not get completed then our offer would be binding.

Or

2. Wait it out - See if the original accepted offer would have fulfilled their conditions and posted SOLD. If not, then go back in with another offer to the Seller.

In my professional opinion, when a Buyer is ready to move quickly due to the shortage of inventory, it is in most cases best to try and get an accepted “Back Up Offer”.  This way, if the original accepted offer does fall through, your offer will be binding, you will not need to start over with the potential of competing again.

My Buyers chose to submit a “Back Up Offer” and it worked in their favor. The original offer was not able to firm up and our “Back Up Offer” which was agreed upon was now in effect.  In this case, we were able to purchase the property for our original offer price which ended up being much less than the original accepted competing offer.

Now does it always work out this way, no…………but at least with this strategy you have a comfortable, calculated opportunity to secure a property.

In today’s fast paced competitive market, Buyers working with a knowledgeable full time professional will have an edge. With that said, call me anytime, as I will be able to help you find and negotiate the right property for you.

All the best

Gary