WHAT'S A BACKUP OFFER?
Did you just find the home of your dreams, but it’s in “pending status? There’s a chance that the property will become available again, if the sale falls through. This is why you’ll want to put in a backup offer – essentially, you’ll be first in line if the original buyer falls through.
WHY WOULD A BUYER CANCEL THEIR CONTRACT?
This can occur for a number of different reasons, including:
Buyer found a home that suits them better
Inability to secure proper financing for the home
Uncovered something unsatisfactory during the home inspection
It’s worthwhile to find out why the original buyer decided to back out of their contract, so you can see if their reason effects your decision to move forward with the property.
WHATS THE DIFFERENCE BETWEEN A BACKUP OFFER AND BACKUP CONTRACT?
A backup offer allows you to walk away with ease, if the reason the original buyer walked away impacts your decision (i.e. an issue with the inspections).
A backup contract will automatically make you the next candidate through an enforceable contract. If you’re confident that the original offer won’t fall through for any reason that would change your decision, this is safest route. Keep in mind, a seller is unlikely to take several backup contracts, where they will likely take many backup offers.
If you'd like to submit a backup offer or if you have any other questions, please book a consultation by clicking here.