Should buyers make backup offers ?
Sometimes buyers lose out in a multiple-offer situation or by making an offer a little too late. It is good to know that you may have the opportunity to make a backup offer. A backup offer is one that's accepted subject to the collapse of an already accepted offer.
The seller can have more than one backup offer, It's rare in the current market but it happens on occasions.
If you have the opportunity to make a backup offer, should you do it? Buyers are often reluctant to make a backup offer because they feel it will strengthen the resolve of the buyers in first position to move forward if there is an bump on the road such as an inspection issue.
Buyers can continue searching and don't need to wait to know if the first offer is finalized. If you make a backup offer, you can continue your search to find a home to buy.
It's usually worthwhile to make a backup offer because there is a high fallout rate in the current market. Just don't sit around waiting for the first offer to be finalized.
From the sellers' perspective, it's usually a good idea to counter an offer for backup position if there is more than one offer. Some buyers won't make a backup offer because they may have another house in mind if they don't get yours.
As a seller, If you have a backup offer and the first offer collapses, your home goes to the backup buyer without going back on the market. This can be a benefit to both buyers and sellers. The backup buyer doesn't have to face multiple offers again, and the sellers don't have to go through the hassle of finding another buyer.
Back offers can be good; sellers should feel comfortable with a prospective backup offer; it may be a great opportunity especially in a buyer's market.
Go to www.BostonPropertiesNow.com for more information.
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