Backup offers can end up being an important part of real estate transactions, especially in a hot market, so what are they?
When a property has received an offer to purchase, and that offer has been accepted by the buyer, there is typically a time period in which that offer has to complete. During that period of time when subjects to that sale may need to be met (financing, inspections, reviewing documents, appraisals) another offer may come in as a “backup” to the existing offer that is in play. If you are in the position of wanting to purchase a property that already has an offer on it, you may want to seriously consider having your real estate professional submitting your offer as a backup offer. There are many different reasons that offers on properties do not succeed at removing their subjects and completing. If your offer has been accepted as a back up, you’re already in the wings and prepared to start your own purchase process!
If you submit a back up offer you’re already first in line of the original offer doesn’t work out, and in a hot market, that is great place to be!