The first buyer is not performing as per the contract and you were right to issue a notice to perform. Follow through and release him from the contract and accept the back -up offer. Your seller will be getting a better deal and you will be able to close the transaction.
Keller Williams Realty
*disclosure* it is always difficult to provide advise without knowing all aspects of the transaction. Start by asking this question to your listing agent.
Given the limited information provided, I have to say as a VERY experienced agent I am not surprised. Many homeowners and their agents are more apt to accept an all cash offer, only to learn that all cash buyers can be more demanding and think they are in the drivers seat.
Ask yourself why you accepted an all cash buyer with an offer price lower than a well qualified, with significant money down financed buyer?
I would have your listing agent speak with the financed buyer, see how long it would take to close with the lender (many can complete in 21 days), then speak with the 'cash' buyer and let them know that if they do not perform, your agent will be canceling escrow.
Best of luck!
Kindred Real Estate
What does your current listing agent suggest? They would have the most information available, and therefore the best advice for you. I think you know the answer, now it is simply mechanics by your agent, broker and/or attorney to make it happen for you. Good luck,
Balboa Park Realty, Broker/Owner
What is the status of the repair request? Have you responded? If so...there's not much you can do...If not, you can respond that you won't do the repairs and wait for that buyer to back out...
At the risk of asking a silly question...do you have a listing agent you can ask?
Luckily you have a backup offer from a party that Really Want the house.
So, work with your agent and go with the Back up Buyer after verifying that they can get the loan.
Lance R. King - Founder/Managing Broker
King Realty Group
DRE # 01384425
415.722.5549 - Cell
You can carry though if the buyer doesn't perform. Then you'll be free to take the next offer, if you can wait an extra 30 days to close. And, just getting a verbal, "The buyers are OK with not asking for repairs," isn't the same as in writing. So, if this current escrow does cancel, be sure you get agreement in writing from the new buyers before accepting their offer.
And, while you're countering, maybe shorten the contingency period so you don't have to wait 17 days. In this market, buyers should realize there's another buyer right around the corner.
Cory La Scala, REALTOR
Lic # 01443391