Why Make Back-Up Offers in Real Estate

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Why Make Back-Up Offers in Real Estate

ACCEPTING BACK UP OFFERS

With the large number of great deals in Jacksonville real estate today due to the large number of foreclosures and short sales, why would a buyer want to make a back-up offer? Why not just move on to find some other house for sale and make an offer on it?

First, what is a back-up offer?

The first accepted offer that a seller receives and signs becomes the primary contract. Most contracts to purchase are made with contingencies such as loan approval, acceptable home inspection, mortgagee approval on a short sale, etc. It is not uncommon for other offers to be presented after the primary contract is signed and these other offers are considered back-up offers.

Submitting a back-up offer in today’s market is an especially good idea. It has always been true that contracts fall apart over inspection and financing issues and with today’s much stricter financing guidelines this has become more and more common in the Jacksonville real estate market.

If you are extremely interested in a property and have time to wait a few weeks, we highly recommend submitting a back-up offer. Your chances of getting that home you really want may be better than you think and you have absolutely nothing to lose by making the back-up offer since you can always rescind the offer if you find another home for sale that you like as much or more.

When submitting a back-up offer, your agent will assist you in carefully reviewing, presenting and negotiating all terms of your offer with the seller. To further insure your interests are properly protected, you may wish to consult an attorney.

If the primary buyer’s contract fails to close for whatever reason, the buyer and seller will need to sign a contract release after which the seller must notify you that your back-up offer is now the primary contract. From this point on you will be required by contract to proceed per your contract terms.

Tim
Tim
TIMOTHY H. FENNELL, PA - Tim Fennell is a Florida licensed Real Estate Broker Associate with The Legends of Real Estate. Realtors® in Jacksonville, Florida. His strong background in business development, real estate investments, counseling and marketing greatly enhance his skills as a Listing and Internet Marketing Specialist. Tim and his wife, Susan, have over 30 years experience in Jacksonville Real Estate sales, marketing and investing and both are Accredited Consultants in Real Estate (ACRE®). When you're ready to be consulted with, rather than sold to, give them a call at 904.568.4528

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