Backup Offers in Real Estate
Let’s talk about backup offers. When you’re in a competitive market such as Long Island’s real estate market, there is always the possibility that a home you are interested in already has an accepted offer, or your highest and best offer was ultimately not selected.
Now, if that is the case and you truly love the home you seem to have just missed out on, you should instruct your agent to communicate to the listing agent that you would like to be presented as a backup offer on the home.
Being a backup offer means you are next in line if the first buyers back out or cannot complete the deal for any reason.
Now here are a few things to consider.
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- For you as a backup home buyer, it’s important to remember that most accepted offers and purchase contracts do go on to successfully close. The odds that your backup offer will come into play are small, so do not let a backup offer derail your home search.
- For your agent, it’s important to keep an open line of communication with the listing agent, and proactively check in to confirm things are moving towards contract and close. If there are any bumps along the way with the first offer, being in close communication can make or break a deal.
- None of this is possible without the parties on both sides acting professionally and keeping things cordial. So if you do unfortunately lose a bidding war on a home, do not take it personally because you never know what can happen.
Do you have questions about the home buying process? Please contact me for more information – I’d be happy to help.