Why would a seller request backup offers?
It is not unusual for a home buyer to discover a home that is under contract and the seller has instructed their listing agent to note in the MLS that backup offers are requested. Why would a seller request backup offers? Backup offers may be requested because of a variety of reasons including:
- The seller has concerns about their buyer’s financing.
- Perhaps there has been a longer than usual time between effective date and closing date negotiated in the contract.
- The seller may have already experienced prior transactions that have failed to close.
- Home inspection or home appraisal concerns.
A backup offer would provide the seller with confidence that should the existing contract fail to close for whatever reason, they would have a new negotiated contract ready to take its place.
Backup offers/contracts would be subject to the termination of an existing contract the seller has executed with a buyer. Buyers should put a time limit on the amount of time they are willing to leave their offer/contract as a backup.
Consult with your real estate agent or an attorney about entering into a backup contract for your home.