Back-Up offers Have you ever been looking for the perfect property and rushed out to take a look but found out that you were not the only one; and someone else wrote an offer and the property is in
Negotiating Tips - The Back Up Offer
Dated: June 29 2020
Have you ever been looking for the perfect property and rushed out to take a look but found out that you were not the only one; and someone else wrote an offer and the property is in “pending” status?
It can be very disappointing to find out that a property you were really interested in is now not available because someone beat you to the punch and got an offer accepted. So now what!?
This is a great opportunity to write a back-up offer. The back-up offer means that, if for some reason the offer in first place does not waive their conditions and that offer becomes a “dead deal”, the back-up offer activates and becomes the “active pending offer”.
Why write a back-up offer rather than just wait to see how the first place offer goes?
Any good listing Agent that has an offer that does not proceed to a sale, will call all of the Realtors that brought their clients to view the property to let them know that the property is no longer pending and is open to receive offers once again. If it is a popular property, this could, in turn create an opportunity for the listing to receive multiple offers, and even drive the price up.
If there is a back-up offer in place, the back-up moves to first place, and there is no need for competing with any other offers.
Why would a Seller accept a back-up offer?
A back-up offer is very desirable to seller, as it ensures that if the first place offer does not proceed, they are secured with another offer in place and have a better chance of selling their property without the concern of having to go back to the market.
What should you include in your back-up offer?
Think of your back up offer as a first date! You want to put your best offer forward. You will want to ensure that the seller finds your offer desirable so that you offer is always playing in the back of their mind while working with the first-place offer.
Writing a back-up offer is a very viable strategy to buying real estate, and you want to ensure that you have every opportunity to get the property YOU WANT!
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