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Canadian Inv…, Home Buyer in Chandler Ginning, Gi...

What does this mean ? ---"This property is in backup or contingent offer status." , does it mean that if I place an offer , I am wasting

Asked by Canadian Investor, Chandler Ginning, Gilbert, AZ Tue Jul 13, 2010

both my agent and my own time? Thanks!

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In most situations another buyer has the home under contract and some sort of contingency exists that has not been met. That could be Inspections, Short Sale approval, the sale of another home and a number of other possibility's.

Your agent should be able to get more information from the other agent that has the home listed that will enable you to make an informed decision.


For some being in a backup is OK if the property is a perfect fit and the buyer is willing to wait it out and take a chance.

Doug McVinua
HomeSmart

http://www.McVinua.com
Web Reference: http://www.McVinua.com
2 votes Thank Flag Link Tue Jul 13, 2010
Hi Canadian Investor,

Yes you would be wasting your time. In the past 5 years, I've never had a backup offer accepted that was submitted on a property listed as Active with Contigency or AWC. Talk to your agent, but I think you are wasting your time. Good luck.

-----
PAUL WELDEN PLLC
HomeSmart
Exclusive Buyer's Agent
Web Reference: http://CheapAnthenHomes.com
1 vote Thank Flag Link Tue Jul 13, 2010
This would be a GREAT question to ask of your buyer's agent! If you can't consult with your own agent, you're really missing out.
1 vote Thank Flag Link Tue Jul 13, 2010
It depends on the strength and placement of the first offers. There may be contingency deadlines that are close to being due and the current contracts may not be able to meet them. Your agent will call and get the story.
1 vote Thank Flag Link Tue Jul 13, 2010
A purchase contract has most likely been executed by a buyer and the seller, based on our multiple listing service rules they must have contingencies which have to be released, it could be a lien holder approval if it is a short sale, it could be contingent on the buyer's home selling which is less likely in the current market. Once the contingency is satisfied it will then go into a pending status or it could be cancelled and placed back on the market. Another buyer could have an option to go in back up position if the seller is permitting that opportunity.
0 votes Thank Flag Link Tue Feb 19, 2013
With the number of properties available today I typically counsel my clients to choose properties that are not in contingent status, probably a small percentage of the properties in that status will actually go to a back up buyer. If the transaction is a short sale being processed by parties who are uneducated in short sale procedures, there is probably a better then average chance it will have an opportunity of going to a back up buyer. The contingent offer means there is a buyer in first position, if it doesn't work out it can go to a back up buyer.
Jacqueline Roersma
Phantom Realty, Inc
0 votes Thank Flag Link Wed Jul 14, 2010
Dear Can:

This terminology is usually used in conjunction with an offer on a short sale. Often, only one offer is presented to the bank. Subsequent offers remain in a backup status, unless the bank ask to see more offers.

You could be wasting your time. However with many short sale offers fallilng through. Buyers often walk to another home that will close faster. However if the first offer walks, you could also be in the drivers seat. If you are not in a hurry, backup offers can be a good thing.

May I wish you the best.

Regards,

Jeff Masich, Realtor
Arizona Homes and Land
http://ArizonaHomesLand.com
0 votes Thank Flag Link Wed Jul 14, 2010
alway's keep it simple,, contingent is (conditional offer) therefore there are requirements that must be satisfied before the buyer is told to buy.
0 votes Thank Flag Link Tue Jul 13, 2010
With so many homes on the market, why would you mess around in a multiple offer situation? I could understand if is a rare or historic home, but there are 200 homes "active" in Anthem and another 60 in Tramonto. Add in Sonoran Foothills and Carefree Crossings and you have hundreds to choose from with new ones coming on everyday.

Make a solid offer based on the comps and you should have no trouble securing a contract on a nice home.
0 votes Thank Flag Link Tue Jul 13, 2010
Being a back-up offer gives you no guarantees. Depending on the contingency, you could certainly be wasting your time. If the other buyers back out, you probably don't want it anyway. Instead of sitting around waiting for the other offer to fall thru I would spend time looking for another house. There are certainly plenty on the market.

Nelene Gibbs, Realtor, e-Pro
Web Reference: http://www.nelenegibbs.com
0 votes Thank Flag Link Tue Jul 13, 2010
As stated previously, it depends on what the contingency is. You should have your agent call the listing agent to see what the actual status of the property is. There are all kinds of contingencies. It could be contingent on the sale of another property, it could be contingent on the inspections, etc.

Just have your agent call and find out what that contingency is then you can make a decision based on that information.

Good luck, if it is a house you really want I hope you get a shot at it.
0 votes Thank Flag Link Tue Jul 13, 2010
Basically it depnds on what the contingincy is. When there is an offer, and there is a contingincy, such as contingent upon a home inspection, contingent on financing or contingent upon the seller getting approval for a short sale. Something is holding up the sale.

You really need to ask what the contingincy is before making an offer on a property that is contingent status. Back up simply means they are taking back up offers if teh current offer falls through, agaon you can ask what the comntingincies are and straight up ask what teh chances are it holds together.

good luck with your search
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Jul 13, 2010
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