Unfortunately, since you are not a direct party of the first contract with the other buyers, you'll never know exactly what is happening or the likelihood of the first set of buyers closing on this deal. Truth is, I've seen some pretty strange transactions, and depending on the situation, even the craziest buyers do seem to be able to close from time to time. Then again, there are those that might never be able to get it the financing, but that's a lot rarer than you know.
The best thing to do is to submit your backup offer to the listing agent. If the current buyers create any additional problems or fail to meet their deadline for completion of specific contractual milestones, then your backup offer will be a consoling alternative to the apparent chaos of these first buyers. Again, however, you will only know what happens AFTER your offer is put into play with the seller. Until then, sit tight, and keep looking at other homes.
Area Pro Realty-People's Choice
San Jose CA