So, submit an offer. Make it reasonable, but don't worry if it's lower than the first one. (Not that you'll know, but don't agonize over "Oh, what will happen if our offer is lower?") The sellers now are in the clear mindset of "Whew. Finally sold. Now we can pack up and move." If the first contract falls through, they'll be jarred, surprised, disappointed, and thrown off kilter. At that point, any reasonable offer will look mighty good to them.
So, submit an offer that works for you. And then wait to see whether the first contract succeeds or fails.
Buyers in this market think that homes will not sell quickly especially if it has been on the market for a while.They think they can wait to see if it will go down more in price since the people they talk to advice them to wait.
I had a home on the market for 5 months with three price reductions and no substantial offers. In the 6th month we got an offer that the seller was willing to take and the all of a sudden I started getting other buyers and their agents calling to see what it would take to get their buyer the house. I told them it was pending. They were very disappointed and wanted to pay more than asking price (In Today's Market!!) to get this house, but it was too late, so, in other words...when it rains, it pours.
The offer did go through and we left three buyers disappointed. One of them did tell me that they thought the seller would have another price reduction and they had been waiting for that. They had their eyes on this house for 4 months.
So as Larry says, you could write a back up offer and keep looking for another house but next time, if you really like the house, try to be the first one and see if you can negotiagte a good price and then go for it.
If I can help, please let me know
Help-U-Sell Achievers Realty
40083 Mission Blvd
Fremont, Ca 94539
If they are accepting back up offers you can submit and then it is up to the primary offer to fall thru. You will be in a waiting game and don't get your hopes up too much. Kind of like sitting on the bench and wanting to play but you have to wait for the first string person to get hurt. Bad analogy but, you get my drift. So give it a shot but, I would continue to look. If you find another you can always withdraw your offer.
Coldwell Banker Triad