What’s a Real Estate Back Up Offer?

    back up offer

     

    So you’ve searched and searched and searched some more and finally found the perfect New Orleans home, only to discover that another offer has just been accepted.

    Disappointing, I know. Don’t give up completely, though, because a back up offer can secure your place in line in the event that the first contract falls apart.

    How does a back up offer work?

    When a home owner accepts a buyer’s offer, that accepted offer is considered the primary contract. Buyers who would still like to make an offer in the event that the primary offer cancels are making “back up offers”. It’s called a back up because it’s the back up plan for the seller.

    If the original offer is cancelled, the back up offer then moves up and becomes the primary offer.

    How do I submit a back up offer?

    The paperwork and negotiations on a back up offer are the same as on any other purchase agreement, however your agent should clearly mark the offer and any counter offers as back ups for your protection.

    Can I still continue to look for houses?

    Absolutely. As a matter of fact, we encourage you to do so. There’s no guarantee that you’ll move into first position, so keep all of your options open.

    If I find another house, how do I cancel my back up offer?

    Your agent should include the terms for withdrawing your offer in the purchase agreement. Canceling prior to becoming the primary offer is risk free as long as it is documented correctly. This is where using the services of an experienced REALTOR® is extremely helpful.

    What happens if my back up offer becomes the primary offer?

    Just like any other purchase, the clock starts ticking for inspections, due diligence, appraisal and loan approval. All of the normal terms of your purchase agreement will be in effect.

     

    Need to know more? Just call 504-327-5303 and we’ll be happy to help. 

     

     

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