Home Buying in Glendale>Question Details

Richard Nowak, Home Buyer in Glendale, AZ

If a short sale already has an offer on it, can I place a backup offer, in case the original offer falls through?

Asked by Richard Nowak, Glendale, AZ Thu Oct 7, 2010

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Absolutely Richard,

There is nothing that would prevent you from writing and presenting a back offer on a short sale property .

In fact, if you really like the home, I would suggest it.

For more than one reason initial offers can fall out from things like buyer financing problems, buyer remorse, uncertainty of the market and so on.

One thing you should still remember though is that it is a "back up" offer. Communication will be "Zero" as of the status unless you are contacted to ask if you would like to purchase the home because the other offer fell through.

Most importantly, there may also be other back up offers so be aware that your's will be among those the seller will consider so be smart about what you are asking the seller to contribute with stuff like closing costs and home warranty and so on and with the amount you are offering.

Good Luck To You!

Stew Keene - Home Smart Realty
Certified Short Sale Negotiator
Web Reference: http://www.stewkeene.com
1 vote Thank Flag Link Thu Oct 7, 2010
You certainly can try. Some listing agents will legitimately hold your offer as a backup, though I've seen just as money simply re-activate the listing regardless of what ever backup offers they may have received.

Given only about 1 in 6 or 7 short sales close escrow in general, being a backup to a short sale generally is an excellent way of never purchasing.
2 votes Thank Flag Link Thu Oct 21, 2010
Hi Richard,

Yes. You can always submit backup offers on any property .... short sale or not.

-----
PAUL WELDEN PLLC
Exclusive Buyer's Agent
HomeSmart
1 vote Thank Flag Link Thu Oct 7, 2010
Yes, for sure! It is not uncommon for the first buyer's offer in a short sale transaction to fall out. Most short sale buyers get tired of waiting around for the seller's lender's approval and move onto to another property. Having an offer in as a back up would be a good choice.

Best of luck!
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Tue Dec 21, 2010
Richard,

Absolutely! Your agent should find out as much as possible from the listing agent about the current offer, then act accordingly. I would also keep a close eye on the property's status. Best of luck to you. Congratulations on your quest to purchase real estate.

Natasha Tomlinson
Realtor
Citywide Real Estate, bank owned property specialists
Direct: (480) 203-4364
NatashaTRealtor@gmail.com
0 votes Thank Flag Link Thu Dec 16, 2010
Richard,
Yes backup are a really important part of a short sale. Here is the key, have your agent talk to the listing agent, get all the specifics of the existing offer submitted like, purchase price, seller contribution, cash, conventional, fha, then submit the exact same offer, reason is if the original backs out you can be put in place and all that needs to be done is a name change the net to the bank is the same. But this doesn't always work sometimes the bank wants to start all over from the beginning. Hope that helps.

Jeff Star
RE/MAX
0 votes Thank Flag Link Wed Nov 24, 2010
Absolutely. You will be in a backup position.
0 votes Thank Flag Link Thu Oct 7, 2010
Dear Richard:

Good question. Even if the listing is coded AWC, Accepted with Contingency it is wise to place a back up offer if you like the home.

Why, most short sales have an issue and buyers often walk, not wanting to wait for the bank and seller to conclude the transaction. Also, the bank can ask for another offer, even if the seller has accepted a purchase contract from the another buyer. In a short sale the purchase contract is contingent on the lender accepting the offer.

So, if you want to be in a good position, yes....submit your backup offer. You may just get the home.

May I wish you the best.

Jeff Masich
http://JeffMasich.com
HomeSmart
0 votes Thank Flag Link Thu Oct 7, 2010
I definitely recommend it...Most short sales take minimum 2 months as long as up to 6 or 9 months. Alot can happen during this time. The buyer may not be able to close on time...or the buyers walk away...or the buyer's credit tanks because of unforeseen circumstances. It's always good for a short sale to have an "ace in the hole." And also, if your offer is slightly higher....and the bank decides to not accept their offer--or make them pay some closing costs, you can come in and save the day.Good luck with it. I hope it works out.
0 votes Thank Flag Link Thu Oct 7, 2010
Sure you can, just let your real estate agent know what you want to do. If you do have an agent to look out for your best interest, my advice is get yourself one.

Thanks for the question
Phyllis JC Anderson, GRI, AHWD
Liberty One Realty
602-316-0115
Web Reference: http://www.YourAzCastle.com
0 votes Thank Flag Link Thu Oct 7, 2010
Hi,

Yes you can place a backup offer on a short sale property.

Thanks,

Vinita Shegog
623-738-3696
0 votes Thank Flag Link Thu Oct 7, 2010
A back up offer on a shortsale is a great strategy, since there are so many areas where those deals can fall apart. But make sure your agent stays on top of it by getting status updates from the listing agent every 2-3 weeks.

Chuck Gullett
Best Chicago Properties
0 votes Thank Flag Link Thu Oct 7, 2010
The seller will usually take back up offers. Have your agent check with their agent.
0 votes Thank Flag Link Thu Oct 7, 2010
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