PDF Back-up Offer Addendum # Acknowledgment Effective is a PDF secondary backup contract.
Imagine that you have found your perfect home.It's within your price range and has everything you need.The seller will only accept a backup offer according to your agent.
Should you write a backup offer?The situation isn't ideal, but it could be better.Unless there's a good chance the offer in hand might not work out, sellers don't usually ask for backup offers.You might end up buying that home if you secure your second spot in line.
If you're wondering if you should write a backup offer, here are some important considerations to keep in mind.
You might be wondering what a backup offer is.If the first offer falls through, then the backup offer will come into play.
A contingent contract that would only close under a specific set of circumstances is one form of the first offer.
The whole deal might be canceled if there is a hiccup on any of the contingency points.Without a backup offer, the seller would have to put the home back on the market.If the first buyer cancels, then you are in contract with the seller, because a backup offer acknowledges the existence of an existing offer.
A backup offer prevents the seller from entertaining other offers or putting the home back on the market.If the first buyer cancels, your contract comes into play.
If prices have gone up since you wrote the backup offer, you have locked in the price from your original offer.
The contract needs to be effective if a backup offer is signed by all parties.If the seller makes the situation clear to everyone, they can sign more than one backup offer.If there are four backup offers, you could be in the fourth position.This is the offer that's next in line, so you want to be in the first position.
You don't have to buy the home if you put yourself in a backup position, and you can still look at other homes on the market.If you find another home you like better, you might be able to withdraw your offer, but that practice is frowned upon, it pretty much negates the purpose of a backup offer.
Depending on how many offers the seller receives, your backup offer may need to be higher than the asking price.You can be certain that there will be more than one offer in a multiple offer situation.
If it's a higher offer, the seller has an incentive to stick with it.The seller might be willing to accept a little bit less if you submit a backup offer.If multiple offers are the norm in your neighborhood, it's a good idea to match the offer on the table.
It's a good idea to consult an agent who knows the local market when making a price offer.