Real Estate Blog

What is a back up offer? 

So,  what is a backup offer and how do you write one? A back up offer is exactly what it says-it’s an offer that “backs up” a current contract that’s already in place. 

Say you find the PERFECT property but someone else has already made and offer on it, and the seller has already accepted the offer. You may still be able to place a back up offer on the property. This means that if something happens and the first offer falls through, you are next in line. If the original buyer backs out because of an inspection, or if their loan falls through, or any other contingency is not satisfied and that prevents them from following through on the purchase, you get your shot. When working with a back up offer, we negotiate and come to terms just like with a regular offer. If the first offer falls through, your offer moves into place and your timelines begin. 

This can also be another tool used in a highly competitive market where homes are selling very quickly, or where homes are being put under contract with a sight unseen buyer. 

If you have any questions about this or anything else in the real estate process just give me a call. I’m Alan Castleman with Hickman Realty Group, and I’m here to help you!

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