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Buyer Advice: You Can Still Make A Backup Offer

 

Buyer Advice: You Can Still Make A Backup Offer

 

69 Murphy Farm Road Wants a Backup Offer!

 

I am sure that it does NOT come as a surprise to you that this gorgeous home located at 69 Murphy Farm Road is pending. 

 

If it does surprise you --> it shouldn't.

 

I had an agent call me to tell me that they had told their buyers that they needed to make it a priority to see this one before someone else snatched it up. Unfortunately, more times than not, people just think we are being pushy. NOT! We have the data at our fingertips. It is not hard to figure out average days on market for properties.  AND MOST IMPORTANT -- if you love it, what on earth makes you think you are the only one?! (Just sayin'!)

 

So, buyers -- if you misssed out, you can still make a backup offer!

 

Things happen! Besides having the financing fall though, here are a few things that have happened over the years:

  • Job transfer to a different location.
  • Buyer passed away a week before closing.
  • Wife walked in to a closing and told her husband that he "would not buy that house."  And he didn't. OH MY!

 

You never know what will happen. Homes are not "SOLD" until everyone has signed and the money has changed hands.

 

If something does happen, and you have an executed backup contract, it cannot be sold to someone else -- EVEN if they offer more than you! --> But they can make a backup offer. ☺

 

If you missed out on this great property, call and schedule your private tour TODAY! Because you can still make a backup offer on 69 Murphy Farm Road!

 

Buyer Advice: You Can Still Make A Backup Offer

 

 

 

This has been brought to you by YOUR Huntsville / Lake Livingston Area real estate professional. Before you buy or sell, call Joni Bailey at (936) 650-9017. I look forward to earning your business and exceeding your expectations. Broker Associate with Berkshire Hathaway Home Services - Anderson Properties. Mike Huff, Broker.  BerkshireHathaway Hom Services is a member of the franchise system of BHH Affiliates, LLC. Each office is independently owned and operated.

TEXAS REAL ESTATE COMMISSION CONSUMER PROTECTION NOTICE

TEXAS REAL ESTATE COMMISSION INFORMATION ABOUT BROKERAGE SERVICESJoni Staples, Broker Associate BHGHRE-AP (936) 650-9017

 Copyright (C) Joni Bailey     (936) 650-9017  www.LivingLakeLivingston.com

 

Licensed in the state of Texas (0518539)                         

 

  LivingLakeLivingston@gmail.com

 

      

Comment balloon 29 commentsJoni Bailey • June 30 2015 09:53AM

Comments

Why not, it is a no obligation contract in our state and you can still look for another home. I can tell you in the short sale days it was a very smart thing to do.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) over 3 years ago

This is a tough one. Yes contracts kick out. I am not going to say the back up offer has not worked in the past. Time always tells. 

Posted by Bill Reddington, Destin Florida Real Estate (Re/max Southern Realty) over 3 years ago

Joni I have had Borrowers lose their job during a transaction.  It isn't closed until it is closed :)

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 3 years ago

Yes back up offers are in play right now.  Buyers BEWARE!  They might not lose their earnest money, but if they aren't following their contractual obligations, sellers don't have to AGREE to anything . . . and a back-up offer behind the scenes may be a better deal!

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 3 years ago

I have these things you mentioned happen plus countless strange others... never hurts for a back up offer! Congratulations... again!!

Posted by Rob Thomas, Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro (Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954) over 3 years ago

Joni, congratulations on your pending sale.  Like you, I am a firm believer in backup offers.  There have been many times when a second or even third buyer got the house only because they were not deterred and out in their backup offer.

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) over 3 years ago

Joni Staples 

How wonderful to have a quick sale on this property.

This scenario happens so often in ouu market with buyers wanting to think about an offer, or even not rush out to see a home thinking it will be on the market for a bit more time. Some times that works out for them, but so often it does not. And you're right - if the buyers like it, chances are very good many others will too, and those buyers are dealing with the same local market conditions and probably know the score.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) over 3 years ago

Joe Pryor  We have Option Periods in Texas. So the buyer could opt out during that time as well. So hey... ANOTHER good reason to submit a backup offer.

Carla Muss-Jacobs, Principal Broker/Owner  Many times the back up offer is better than the original offer. Good point!!

Rob Thomas COUNTLESS others..... agreed! HA!

 

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Silvia Dukes PA, REALTOR, CRS, CIPS, SRES Wow! I've never had a third buyer end up with it. I'm afraid the seller might have a heart attack. Yikes!

Jeff Dowler CRS Sometimes it takes a buyer missing one or two before they realize that we really are not trying to "push" them. We are trying to help them get what they want.

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Great post Joni Staples I have had very good sucess with backup offers, especially homes that are contingent upon the buyers homes selling.

Posted by Bob "RealMan" Timm, Bob Timm, Project Coordinator for Tivoli Homes (Tivoli Custom Homes) over 3 years ago

Bob "RealMan" Timm Rarely do I see one of those actually work in our market. However, I just had one close this month that was contingent upon another house selling. The only reason it worked is because the buyer already had a contract on their house when they made the offer on my seller's house. So it happened quickly (before someone else could snatch it up!) :)

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Good evening Joni,

Great advice..if you love a property why hesitate..it's bound to mean someone else does too! Placing a backup ensures you are in first position if something goes south on the primary offer.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) over 3 years ago

Joni

Your advice is right on point for a buyer to make a back up offer.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 3 years ago

Joni - I have seen several instances where the original offer fell through and the buyer with the backup offer ended up with the home.

Posted by Troy Erickson, Your Chandler, Ahwatukee, and East Valley Realtor (Diverse Solutions Realty www.ChandlerRealEstate.weebly.com) over 3 years ago

I always suggest to write a backup offer, but majority of buyers don't like this idea, unless it is a short sale.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) over 3 years ago

Joni I always tell my buyers nothing ventured nothing gained, either we help the first one to stay in the deal or if they fall out it is ours...I had a few deal where we were the back up and ended up closing the deal...Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) over 3 years ago

Oh so much can go wrong along the road to the clsoing table so yes if the buyers want that house, make a back up offer and you may get a chance. We have all seen it happen.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 3 years ago

Richfuscious say...Early bird catches worm, but back-up bird eats less

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 3 years ago

Dorie Dillard  EXACTLY!

Lou Ludwig  Thank you!!

Troy Erickson Me too. EVEN on cash offers. The buyer on the one I spoke of in the post whose wife told him not to buy lost 10,000 in earnest money. YES, you read that right!

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Inna Ivchenko You're right! And sometimes it isn't even the buyer that is hesitant. Many agents do not know how to write a backup offer that is in the best interest of their buyer so THEY discourage them. Oh my!!

Endre Barath, Jr.  Sometimes an inspection will cause a buyer to back out. Then the one with the backup offer is FINE with "no GF plug in the garage bathroom."  They realize it can be fixed! HA!

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Debbie Reynolds Yes we have!!

Richie Alan Naggar author of books on Life-Love-Intimacy-Purpose HA! Joni say -- you funny!

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Joni, I think that when buyers put in a backup offer it's really great for the sellers, but I've almost never seen one become the primary.  When the original buyers know that somebody else wants the place badly enough to put it a back up, there is no way they are going to kick out.  And you're right - every once in a while something will happen.  You just never know.

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 3 years ago

This is good information for prospective home buyers.

Make this a very productive week and enjoy the holiday weekend!

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) over 3 years ago

Many back-up offers have a slim possibility of succeeding, but they have no hope if they are not even in the game

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 3 years ago

Joni Staples Excellent advice! It doesn't hurt to put in a back up offer.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 3 years ago

In MA, a seller is not obligated to obtain back up offers and the listing agent is not required to market a listed property under the REALTOR COE once an offer has been accepted, unless requested to do so by the seller.  I've seen situations where the seller wishes they had taken back up offers and others where the buyer's wish they hadn't.  Unless they are carefully written (by an attorney) - these can become binding contracts if the other deal falls through.  Your buyer client may not be able renegotiate terms or price because of any defects found by a previous buyer or lender.. or worse yet, the buyer decides they no longer want the house!!! Caveat Emptor.  And have plenty of E&O coverage if you recommend to your client to make a back up and it becomes binding and if it (unfortunately) goes bad!

Posted by Martin Kalisker, Professional Standards & Legal Assistant (Greater Boston Association of REALTORS) over 3 years ago

Patricia Kennedy  That is true. But buyers cannot control death in the family, a transfer of a job, etc. We cannot predict the future. I always say that if it is meant to be, it will happen. As you know, a back-up does not hurt the buyer. In Texas, it is the same contract that is normally used with the addition of a back up addendum that covers the issues that Martin Kalisker  has problems with in HIS state. ☺

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Roy Kelley  Thank you!!

Ed Silva  and Michael Setunsky  Exactly! 

 

 

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

Martin Kalisker In Texas there is an option period. The back up offer's execution date changes to the date they are notified of the termination of the orignal offer. Then THEIR option period begins if they had one in their offer. In Texas the seller is required to attach any written inspection so they must disclose what was found. :)

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (Berkshire Hathaway Home Services - Anderson Properties) over 3 years ago

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