Why Being A Back-up Offer is a Good Strategy
You make an offer on a house, a house you really want and you are outbid by another buyer. What do most people do, they wait or keep looking until they find another house of their dreams.
If your offer is not the first one chosen by the Seller and you really want the house, go in as a "back up". This means simply submitting an addendum stating if for any reason the first offer doesn't go thru, you want first consideration.
Many times offers do not go through for any number of reasons and unfortunately listing agents don't always go back and see if there is still interest from the buyers who originally submitted an offer and they put the home back on the market.
Case in point, one of my clients found a house they really wanted. The seller received a strong cash offer before we were able to submit our offer. The house came back on the market. My clients submitted an offer right away and so did someone else. Again a strong cash offer. I suggested to my clients that we go in as a back-up offer. We did and one week later they got the house. Two different buyers, two cash offers and neither one of them worked out.
There is no downside to requesting a formal back-up agreement signed by both buyers and sellers. As a buyer you can still keep looking for a home, you just have to notify the seller in writing that you are removing the offer. It doesn't cost you any money, so why not do it. You just never know.
Filed under: General RE Tips
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