Home Buying in 75038>Question Details

Ntcounts, Home Buyer in 76107

Active Option Contract... is it too late to make an offer is someone else has an active option contract on?

Asked by Ntcounts, 76107 Mon May 11, 2009

the house? I suppose it is rare, but possible depending on the contract was written. But essentially I'm wondering if we could outbid the current offer if there is active option contract in place or if that time has passed?

Help the community by answering this question:

Answers

7
No, it is not too late to make an offer if the seller is willing to entertain a “back-up” offer. Should the seller decide to accept your offer, and the existing offer falls through for whatever reason, then you can move forward with the purchase of the property.

Could you outbid the current offer? I think what you’re asking is if you made quite a substantial bid, could you knock out the existing offer. The answer is no. The terms and conditions of the existing offer were locked in the moment both parties indicated their agreement when they signed – “Executing” the contract.

The end of the Option Period does not signify the end of the existing agreement, so you would have to check with the listing agent to ascertain the status of the property at that point. Keep in mind that even if the existing contract does not fall out during the Option Period, it could still fall out if the buyer is unable to fulfill the contingency for financing
0 votes Thank Flag Link Fri Apr 20, 2012
You can make an offer to be placed as a backup offer should the existing contract not proceed to closing. It is not uncommon today to have contracts fall out because the buyers are unable to secure financing. Should that happen, your offer would be next in line for consideration provided there are no other offers.

Have your buyer's agent contact the seller's agent to see if their sellers will consider a back up offer. If they have a solid contract, they may not. If the contract is iffy, they may. However, both parties are bound by their existing contract and subject to penalties if they do not perform according to its provisions.
0 votes Thank Flag Link Tue May 12, 2009
What does your buyers agent state? It all depends on many factors involved regards executed sales contract currently in place. Buyer and seller has performance terms and conditions.

Have you consider other homes in area "similiar floor plans" quality of contruction.

If you need assistance contact my office.

CONTACT OUR OFFICE TODAY
972-699-9111
Lynn A. Crosby ~ National Featured Realtor
"...Specializing in Residential, Commercial Properties and Loans..."
Dallas Realtor, and Credit Repair Consultant -
The Michael Group - "Dallas Business Journal 08' list top realtors"
Dallas Loan Officer -
Dallas Real Estate Office: (972) 699-9111
Dallas Real Estate Website: http://www.lynn911.com 60,000 listings Dallas homes for sale
0 votes Thank Flag Link Mon May 11, 2009
Since this in Texas, let me offer wisdom here. First, do you have your own representation? In Intermediary which is when the listing broker and the buyer's broker are the same, the listing broker can't tell you what the lowest the seller will take for the property, and the buyers broker can't tell the seller the max amount the buyer would be willing to pay (unless the parties instruct their agent to act otherwise for them.) Otherwise, what can happen is when you use the selling agent to make the offer, if your not their "Client" (key word) then they can tell their seller exactly how much you love it and how high you'd be willing to pay for the house. So, first establish who your representation is. Do you have a signed contract with a REALTOR?
Then, depending on what's going on with this offer, (and your agent could find that out for you), you could make a back up offer. However, that has some obligations you should understand before you enter into a back up contract, which would factor on how soon you need to be in a home, as well. So, if you wanted to place an offer to go higher, than you could do that, however, at this point in the transaction, the seller would be able to accept a back up, but you would for the most part only be able to buy the house if the seller either backs out during option period, or exits the contract for reasons stated in the specific agreement between the seller and the buyer. An option contract means they have the option to buy the house. The seller can't say now we got a higher price so we are cancelling with you and going with this other offer. However, the seller can say we are not going to make any repairs, and the buyers could opt to back out during option phase, and then if so, they could then become eligible to enter into a contract with you.

If you want representation and don't already have it, contact me at: 214-991-9507.

Thanks!
Nicole Arenas, REALTOR
nicolearenas@ymail.com
0 votes Thank Flag Link Mon May 11, 2009
Ntcounts,

Once the seller has ratified the contract, they are contractually obligated to fulfill the contract. However, the buyer is in the option period and can opt out for any reason. I wouldn't hold my breath, but there are some potential flies in the ointment:

1. The buyer could opt out for any reason during the option period (inspection items found, they get a job transfer, they find a more suitable home, they decide they don't like the type of tree in the front yard, etc.)
2. The buyer may not be able to get funding

If the seller does not move forward with the sale barring any of these items above, they can be sued for specific performance and still have to sell the house to these buyers.

Is the listing agent willing to accept back-up offers? If you put in an offer at this point, it'll be a back-up offer. Should something happen to this sale, they can contact you to ratify your offer.

Are you working with someone? We have a $5,000 savings minimum guarantee when purchasing a home with us. We narrowed down the pool of potential homes to 4 and showed them to our client this weekend and saved them more than $100k on their home purchase. We work hard to save you both time and money.

Hope this helps,
Terri Hayley
The Hayley Group, Keller Williams
Top 5% of Realtors
0 votes Thank Flag Link Mon May 11, 2009
With out knowing the terms of the option contract, it would be dificault to say if you can bid on the house. I would sugest you to contact a local Realtor or the listing agent to help you further.

My name is Torry Pinter II and I am a Broker and an Owner of Exit Hometown Realty. I sell Real Estate in the Maggie Valley – Waynesville, NC area, specializing in selling Mountain Homes. 828-926-7888 http://www.MaggieValleyHomes.info
0 votes Thank Flag Link Mon May 11, 2009
If the contract is in it's Option Period, this means they have an accepted and executed contract just waiting on their inspection period to clear. You could probably place an offer in as a back-up, but seller is bound unless buyer pulls out due to inspection issues, etc. If buyer attempts negotiations for repairs, etc...and seller does not wish to accomidate such requests, buyer may pull out, and then they may move on to your offer. Hope this helps.
0 votes Thank Flag Link Mon May 11, 2009
Great advice here!
Flag Sat Mar 5, 2016
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Texas > Dallas County > Irving > 75038 > Home Buying in 75038 > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer