Home Buying in Burnsville>Question Details

sneen0508, Home Buyer in Burnsville, MN

Can I make an offer on a home that already has an accepted offer and be the back up if that transaction falls through?

Asked by sneen0508, Burnsville, MN Tue Sep 11, 2012

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Check with the list broker. They may or may not be accepting additional back up offers at the time of your inquiry. Ask the list broker if they already have back up offers, and if so, how many. The key point is NOT to stop looking anytime you find yourself in a back up position - keep looking, and if you find another property you want to pursue, be sure to withdraw your back up offer.
0 votes Thank Flag Link Mon Dec 23, 2013
Sneen0508,

You can submit an offer on anything at any time. Whether or not the seller will entertain that offers depends on the current contract that's in place. Sellers on short sales commonly accept backup offers, is this what you're referring to?

You should speak with a Realtor who has a strong background to navigate you through the process if you're interested in making an offer on a home that currently has an accepted offer. You probably know this already but as a buyer the only fee to your Realtor is likely a $300-$500 commission fee, formerly called an admin fee. Again, this can vary depending on Realtors.

Gail Strom
RE/MAX Results
952-431-6992
gail.strom@results.net
0 votes Thank Flag Link Fri Dec 6, 2013
Thanks all. Lots of helpful information!
0 votes Thank Flag Link Wed Sep 12, 2012
If it is a short sale you may have an excellent chance of getting the home. One of my buyers that went in as back up just closed - he got the deal when the first buyer got frustrated with the short sale process and cancelled. Just make sure that you work with an agent that is experienced with short sales and have an escape clause in the contract in case you find another home you want to purchase while you are in back up position.
0 votes Thank Flag Link Tue Sep 11, 2012
sneen0508,

As the battle ensues below, what you need to weigh out is whether or not you LOVE this house enough to stop looking at all other real estate for a time. Chris is correct, things can happen behind the scenes that are tough to combat; however, a well written contract by someone who knows the nuances of what is going on will go a long way. Rick is also correct in stating that a seller can accept multiple offers as long as the contracts are structured properly. What it all boils down to is this questions: What is the house worth to?

Is it worth waiting? Is it worth not looking at other real estate? Is it worth the risk that things will happen behind the scenes and the transaction falls apart after weeks or months of waiting?

If it is, then make the offer, but do yourself a favor and get a stellar agent to walk you through the details. If it isn't, move on and keep an eye on the property, if it comes back on the market (your agent can help you with that) then pounce on it.

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
612-839-4202
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Tue Sep 11, 2012
You can think it will hold your "spot somehow", but if another back up offer comes in higher than yours during the short sale process the listing agent will find a way to get over to that offer.

That is just coming from someone that has listed short sales and understands both sides of the coin, both listing and buy side. I personally would never reccomend any of my buyers do it but that is just me.
0 votes Thank Flag Link Tue Sep 11, 2012
While Chris is correct that a seller can only sell the house to one buyer, they can sign as many offers as they'd like, all subject to the cancellation of the offer before it. I've seen short sales with three back-up offers in successive order to cancellations of offers before them. The benefit to you as a buyer, again, is that if the offer before yours cancels, and you have an executed contract subject to that cancellation, your offer becomes enforceable subject to any other contingencies you've drafted within the contract. It's not a worthless endeavor if you really want a shot at this house!
0 votes Thank Flag Link Tue Sep 11, 2012
You can, however a seller may only sign "1 purchase agreement" at a time. In short sales I have taken back up offers, and I know other listing agents have done so as well. Please understand though THAT YOU DO NOT HAVE A CONTRACT.

In other words it is great from a listing standpoint, but as a buyer there is zero advantage of doing this. You can easily just monitor the home and see if it comes back on the market, and at that time write up the offer.

A more prudent strategy as a buyer in your shoes is to get set up with a Realtor and make sure the financing is in place. The market is heating up at your price point, and you are at a serious disadvantage by not utilizing realtors. My buyers get to see the properties hit the market before you, and we will most likely view the property before you. We are basically a free service to buyers, and if you are talking about making an offer on a home you are ready to find a good buyers agent.

From there don't worry about that other Burnsville SS. Once you get teamed up with a good realtor we can help you find a great property!

Happy House Hunting!

~Chris
0 votes Thank Flag Link Tue Sep 11, 2012
Yep, as I mentioned in my answer to your last post, short sales often take back up offers and quite often the back up offer slides in to first position when the first offer loses patience in the process...let me know if you'd like to chat further about it.
0 votes Thank Flag Link Tue Sep 11, 2012
Yes, did you have one in mind.

Kirk Duckwall
The Duckwall Team of Realtors
Edina Realty
Cell 651-303-0019
http://www.DuckwallTeam.com
kirkduckwall@edinarealty.com
Your Referrals Are Greatly Appreciated
Ask About Our Free Home Warranty For Buyers and Sellers!
0 votes Thank Flag Link Tue Sep 11, 2012
Absolutely. I will always take back-up offers on listings. There are many things that could change during the process. Do you have an agent or need help in writing a back-up offer?
0 votes Thank Flag Link Tue Sep 11, 2012
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