Monday, June 20, 2022 / by Ana Baldner
If a Buyer submits an offer and the Seller chooses another one, I encourage my Buyers to submit a Backup offer. A Backup offer is a bona-fide written offer - terms, pre-approval or proof of funds and all. There is an additional form that notes how long you're willing to be in Backup position. If the seller accepts and signs off then that home is secured for you, should the 1st Buyer fall through. A lot of Buyers say to me, "That probably won't happen though. I'll just resubmit my offer if it comes back on the market." I tell them, DON'T. If you wait for the property to come back on the market, then you're competing with the entire market again. Buyers fall through all the time, especially in a market where they have to make fast-paced decisions.
Some reasons are:
- Buyers are putting offers in without seeing the property sometimes. Once they see it in person, it may not be what they expected.
- A Buyer may not like something that comes up during the inspection, but it may be something that doesn't scare you at all.
- A Buyer's financing can fall through.
- The stock market dips and that cash buyer no longer has the cash.
- They have a life change, change their mind or find another home that they prefer.
- You don't compete with the entire pool of Buyers again, if the home comes back on the market.
- You can withdraw your Backup offer if you find another home.
- You usually don't put any escrow money down until you're in the primary buyer position.
As for how often buyers fall through, it happens all the time! I have had multiple buyers get their dream home as a Backup offer.
You'd do everything you could to get the right home & I will too. Backup offers are a great way to make that happen!
Written by our own:
Brittany Adamson, Realtor®, GRI
Florida Lifestyle Realty
Cell: 321-537-4676 Office: 321-613-5922