A backup position in a real estate offer assures, as best as it can, that if the buyer, with the accepted offer, pulls out of the transaction, YOU, the seller have another buyer ready to accept the offer and open escrow. No matter how solid and strong an offer may appear, stuff happens. Buyers lose their jobs, they find another house they like better or sometimes just get cold feet.
There are three main reasons why buyers may walk away from a deal. If an appraisal doesn’t come in favorably, the buyer may decide to back out. If inspections reveal that additional, unexpected costs are needed to improve the home, the buyer may pull out. Of course, the loan can be denied, in which case, the buyer has to cancel the contract. Also, it’s one thing to dream of buying a house, but it’s a different feeling when the reality of a buyers’ financial responsibility kicks in. In that case, they simply get a bad case of ‘buyers’ remorse’.
With a solid backup offer, YOU, the seller is somewhat protected. It doesn’t always guarantee that the second buyer will move forward with the purchase, but the alternative is starting over. That means, more Open Houses, more viewings of your home, and of course, another review of offers. Isn’t it worth having at least one backup in place?