Home Buying in Portland>Question Details

Sonya Shrest…, Home Buyer in Clackamas, OR

Listing agent wants me to sign the backup addendum extension. Do you think that he is not very positive about the first offer or what. Help me.

Asked by Sonya Shrestha, Clackamas, OR Sun Sep 16, 2012

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A backup offer will sometimes help the seller to negotiate firmly with the first offer and since the listing agent's first duty is to represent the seller this could be a reason the listing agent would like the extension. But also in terms of representing the seller, having a backup offer helps to protect the seller in the event the first offer falls through. It's unclear whether your are the seller or the buyer. If you are the buyer, then if you don't have another property you wish to pursue and feel like waiting for a chance on this one is the right choice, then go ahead and stay in line. If the first offer falls through due to faults in the home, you may want the opportunity to re-negotiate price or terms so the back up might not be in your best interest.
Good luck
0 votes Thank Flag Link Tue Sep 18, 2012
If you are the buyer in this scenario, your buyers agent should explain the back up process, so you are aware of your position.

If you are the seller your list agent should do the same. In either case both buyers and sellers should know there is a back up offer in place and that is stated by the addendum.
0 votes Thank Flag Link Mon Sep 17, 2012
He sounds like a proactive Realtor to me. Have you asked him this question yet?
0 votes Thank Flag Link Sun Sep 16, 2012
Are you a Buyer or Seller?

As a seller there is nothing better than having more than one buyer want to purchase your home. The added "insurance" means that buyer #1 will have a little more pressure & less flexibility in any further negotiations, since there are other buyers ready to step in and make the purchase.

As a buyer, there is no down side to be in the Back up position as you can terminate at any time and move on to another property. If this is a short sale situation, then often the back up buyers who may come later to the deal are the ones that ultimately get the house. I say to my buyers - if it is the right house, then lets try and put it together.

What is your agent advising you?
0 votes Thank Flag Link Sun Sep 16, 2012
I'm guessing by this question and your many others that you do not have an agent representing you. So my recommendation would be to seek out your own agent to represent and advise you through this. It doesn't cost you anything to have a buyer's agent so please seek one out. Keep in mind that the listing agent represents the seller, not you. They are looking out for the seller's best interests, not yours.

I work with buyers and would be happy to help you further with this. Get in touch if you are interested in my help.

Good luck to you.
0 votes Thank Flag Link Sun Sep 16, 2012
Since we're not mind-readers, we can only guess at what he's likely trying to accomplish. If you're in a competitive situation, the listing agent may be doing you a favor by keeping you in the backup position, just in case the offer under contract falls through. Even if he's totally confident about the offer, there are no absolute guarantees that it will close. Anything can, and often does, happen, especially with financed deals.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sun Sep 16, 2012
Thank you for your help. The listing agent told my agent that he is very optimistic for me. Do you have any advice for me?
Flag Sun Sep 16, 2012
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