2020: The Year of the Backup Offers
We have seen more backup offers in the past two months than we have over the past 27 years in real estate! We are highly encouraging Sellers to take a backup offer and Buyers to write them. Around 60% of our listings that sold first day on market have accepted a backup offer, AND a few of those have come into play. Rick Finn states, “The market is moving at a very fast pace, so we are seeing Buyers rush into making a decision and then later get cold feet. We are also seeing Buyers offer way over list price, and then getting very aggressive on their repair requests after the inspection.” Having a professional Realtor on your side right now is even more important than ever. A proactive Real Estate Agent can help their clients who are selling a home to negotiate the best offer and backup offer by having conversations with all agents involved.
If you are disappointed to find that someone else has already submitted a contract on your dream house, you may want to consider making a backup offer. Backup offers don’t always work out, but enough do that you might want to consider the possibility. If the first deal crumbles, the Sellers may be willing to move ahead very quickly with your offer. With a contract on the table, they had already begun the mental process of packing, moving and handing over the keys to someone else. If their deal comes to a screeching halt, the seller may be very willing to accept your backup offer just to keep the momentum going. Essentially, what the Buyer is doing is reserving their spot in line as they continue to shop for another home.
As with many details in a real estate transaction, accepting a backup offer is a delicate interaction. Done wrong, and it can become a headache or even a legal tangle. Make sure you have an agent that is not afraid to utilize backup offers whether you are buying or selling and is willing to walk you through that process. Contact the Finn Team to help with all of the important details of selling your home or securing a home to purchase.
Questions? We would love to hear from you!