This means that there is a Pending offer on the table for this property and that the seller and their agent have agreed to pursue back-up offers. A back up offer cannot "bump" the original offer (even if it is higher) unless the terms of the original purchase agreement are not met by the buyer which will essentially nullify the agreement. . For example, there are specified deadlines for inspection responses etc and if the buyer lets one of these deadlines expire, then the backup offer could be accepted by the seller. In Minnesota, the seller does not have to notify the first party of the backup. Backups usually work more to the benefit of the seller to hold the first offering party in check during the inspection (keeping negotiation pressure on the buyer not to ask for concessions as a result of the inspection). However, if you really love the house, and you think it was priced right, I would always submit a backup as I have seen them come to fruition. Only do it if you have a realistic expectation about the outcome. Good luck!