If you are serious about the house, definitely put in your backup offer. You can always withdraw it if you find another home. Contracts do fall apart due to inspections or financing not coming through. If that happens, you can be there to pick up the pieces. We are speculating about this other buyer and their offer. They may have been paying cash, they may have been closing sooner. There are a variety of reasons they may have taken that offer over yours. With the home being a historical home, the seller may not have thought that it would pass FHA inspection. Did you ask your agent why they accepted the other offer over yours? They may disclose the reason to you.
As for hiring a real estate attorney, I am not sure what you are hoping to accomplish. The bank is in a legal binding contract with a buyer, so it doesnt matter if you offer more at this point, they are stuck unless the buyer backs out due to inspection or cannot obtain financing approval.
As a side note, beware when looking at REO properties. A strategy is to list the homes WAY below market at an absolutely unbelievable price to get multiple offers that end up being far above list price. I had a client bid $16,000 over list price a few weeks ago and still did not get the house. There were 4 offers and even at 16K over, the house was still $20,000 below market. Make sure you do your homework on recent sales in the immediate area before making your offer and go in with your best foot forward.
As for an attorney what are they going to do? Cost you a lot of money to tell you that the other offer was accepted before you decided to change yours!
In the future when you go in a multiple offer situation offer your "no regrets" price and terms. That way if you get it your fine, if you don't you can always say that you would not go any higher.
Good Luck to you and I hope you get it if the original offer rescinds!
I suggest you continue to look at other homes, as a back up offer is all it is " a back up offer" also, if another back up offer comes in and it is better than yours the agent will submit that offer rather than yours.
There is over 18 months of inventory of homes for sale in the NW Ohio area. You really need to be represented by an agent that is looking out for your best interests. There are some great deals out there, and bankowned properties are sold "as is" no repairs no warranties" If you like the west end area, I would recommend finding a Realtor who specializes in historical homes and would be able to provide you with all the information: trends, great deals, neighborhood information. Please email me direct and I will provide with I believe is the "Expert" in Historical homes.
Email: email@example.com I wish you the best in your search for a home.
Cindy Keil Realtor, CDPE, FIS, SFR
My advice to buyers is to interview three agents and ask your friends for referral to an agent.
Next time you make an offer make sure it is the best offer to ensure you get the deal.
First Weber Group
Certified Distressed Property Expert
I would keep looking just the same and if you find something else you can resind your backup.
There is a chance. Keep looking but don't give up. My buyers in backup have been the one moving in so it is not a lost cause but move forward. Have you agent contact the listing agent at least once a week to let them know you are still there and want it.
Was you offer within the comps, your Realtor should be able to tell you. If the current buyer is financing does it run the risk of not appraisng? If it does, that increases your odds. Financing falls apart more often than you think.
There is always a chance that an offer will fall through before closing. My suggestion would be to check with your agent, if you have one, or with the listing agent regarding what is going on with the other offer. Check on time lines regarding any inspections and closing dates and if there seem to be any delays for any reason. Also, the listing agent might be able to give you an idea of whether or not he/she thinks the deal has a good likelihood of going through or not; sometimes an agent (especially one that does a lot of bank owned sales) may have some insight based on previous experiences with similar types of offers. Remember, the listing agent does not have to share any information with you regarding another offer, but many will so that you don't withdraw your backup offer in case something does happen.
That being said, you can go ahead and leave the backup offer intact and still pursue other properties. If you find another suitable property, just withdraw your backup offer. If you don't find anything, your offer is still the first in line in case something does fall through.
Good luck to you!