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In home buying, a backup offer is made in acknowledgment of an existing offer and ensures a contract with the seller if that first offer falls through. It’s a legally binding contract that, if accepted by the seller, will put you next in line to purchase the home should the first buyer back out.
Why do sellers accept backup offers?
A seller may accept backup offers so if the current buyer walks there is another purchaser ready to close the deal. By collecting backup offers, the seller avoids having to remarket the listing, show the home again or sift through numerous new offers, because backup buyers eagerly await the home on the sidelines.
Do backup offers get accepted?
Just like an offer on a home, it’s a legally binding contract that must be signed by both parties. When you write a backup offer, you’re acknowledging that there is already an offer on the house. But if the first one falls through, yours is automatically accepted and you’ll be under contract to buy the house.
Can you back out of a backup offer?
Can You Withdraw a Backup Offer? A buyer could withdraw their backup offer; however, they’re still obligated to follow the purchase agreement. If the current buyer does not follow the contract, they would be open to losing their earnest money deposit held in escrow.
What does pending accepting backup offers mean?
Pending – taking backups. The seller has accepted an offer on the home, but there are potential issues with the deal. However, the seller cannot back out of the current deal if a better offer comes through. The current agreement has to fall through on its own before the seller can start considering the new proposals.
Does a backup offer require earnest money?
Be aware that a backup offer requires an earnest money deposit. Just like an initial offer, once both the seller and the buyer have accepted and signed it, a backup offer is a legally binding contract.
Can I outbid an accepted offer?
If the purchase contract hasn’t been signed, the seller could accept another offer, even if you think they’ve accepted yours. The seller generally cannot cancel your contract if you are in compliance simply because the seller received a better offer from another buyer.
How many accepted offers fall through?
The frequency of fall-throughs changes month by month, so there is no headline figure. But in recent years, there have been times when half of all property sales have fallen through after the sale has been agreed, whereas at other times, the figure is more like 20 to 30%.
What does accepting backups mean on Zillow?
According to real estate agent Kate Cacciatore with William Raveis in Southport, if a home is “accepting backups,” it means that the best offer is selected in a situation involving multiple bids, but other strong offers are not discounted.
Can seller back out after accepting offer?
Not usually. Real estate contracts are legally binding, so sellers can’t back out just because they received a better offer. The main exception is when the contract includes a contingency that allows the seller to terminate the sale.
Can you withdraw offer on house?
Unless that purchase contract is signed by both parties, it’s not binding, so you can simply withdraw your offer in writing, present it to your seller or your seller’s listing agent, and call it a day — though it may be worth having your real estate agent reach out to the seller’s agent to see why there’s a holdup.
How do I make a backup offer on a house?
How to make a winning backup offer Money talks. Present a clean offer, complete with mortgage pre-approval and proof of funds. Be flexible. Are you willing to give them extra time to enjoy the holidays in their home, or forgo minor repairs that others might insist on? Write a letter. Stay visible.
Can you withdraw an offer on a house before it is accepted?
An offer to purchase a property can be rescinded or withdrawn at any time before it is accepted. For a rescission to be effective it must be given as a notice in writing and received by the other party. Rescission of an offer is not effective until it is delivered to the other party.
What does active u/c taking backups mean?
Terms such as “pending” or “contingent,” commonly seen in online listings, may be familiar, but what about “active with backup offers”? It’s a scenario in which all parties allow the seller to continue advertising and entertaining additional offers, in case the first accepted offer falls through.
What does accepting backup offers mean Redfin?
Definition of Backup Offer When a home has a status of “Backup Offer,” it means the seller has accepted an offer from a buyer but is still accepting offers from other buyers. Sellers accept backup offers if they think the current offer may fall through.
What happens after making an offer on a house?
After you’ve made an offer to buy a house, the seller will either accept your offer, make a counteroffer with one or more changes, or reject the offer outright.
Can a house under contract fall through?
A sale that is “under contract” means an agreement has been made between the seller and buyer, but the sale is still subject to contingencies. In a “pending sale,” contingencies have lapsed, and the deal is near closing. A pending sale can still fall through if there’s an issue with financing or the home inspection.
