Protecting the Seller’s Best Interests With BACK UP OFFERS

By
Real Estate Agent with Century 21 Liberty Homes RS-#62825
http://actvra.in/x99

 

Back in the Day’ it was the norm to have multiple offers AND have a couple of Back Up Offers as well. A Back Up Offer is a security blanket for the seller should the first contract fall out. The Back Up Offer will immediately be in place with a contingency that the original contract has a successful sign off of the cancellation.

 

In Hawaii, we ‘open’ ESCROW (which is an independent third neutral party that takes care of the interests of both buyers and sellers) with an accepted Purchase Contract and initial deposit of the buyer. They take care of the final settlement with the recording of the documents, paying off the existing liens, mortgages and any other expenses to have a successful closing.

 

The ESCROW Company will also take care of a cancelled transaction and send out cancellation letters to all parties and initiate the Back Up Offer Purchase Contract in escrow and send out the first documents for the Buyer and the Seller.  The transaction date starts at that time.

 

This practice ‘saves’ a lot of headache, time and heartache and held true just a few short weeks ago. A transaction for a listing of mine was in contract and a few days before we left on vacation (with my pushing and shoving for the Conditional Loan Commitment Letter) the loan officer says, “In all good faith, we cannot proceed with the buyer’s loan”. YIKES!  You mean the buyer wasn’t qualified after all? 

 

NO PROBLEMO!  We immediately initiated our accepted Back Up Offer two days before departure on our vacation.  The appraisal is in, survey complete, Termite and Pest Control is scheduled to inspect and give a report, full loan approval and tentative signing is occurring next week.

 

I’d say that the market is picking up in order to receive back up offers.

 

I’d say suggesting to the seller to continue showing for back up offers was a positive.

 

I’d say that a back up offers rock!

 

 

 

Posted by

                                                       

 

Celeste "Sally" Cheeseman  is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs  she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.

 

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Comments 51 New Comment

Rainmaker
635,184
Evelyn Kennedy
Alameda, Real Estate, Alameda, CA
Gallagher & Lindsey, Alameda, California

Sally:

Taking back-up offers on a property is just a prudent move.  Even though a buyer seems to be gold, you never know what will happen.  If for some reason the escrow falls through having an offer that can move in first position will shorten the delay in closing.

March 14, 2012 03:08 PM
Rainmaker
232,992
David Grbich
Realtor Orange County Real Estate
Ventana Coastal Properties - www.FindCARealEstate.com

Backup offers are a good strategy for both buyers and sellers. Deals do fall through and buyers in backup can certainly benefit when they do - thanks for sharing.

March 15, 2012 07:28 AM
Rainmaker
334,383
Sylvie Stuart
Home Buying, Home Selling and Investment - Flagstaff, AZ
Keller Williams Check Realty 928-600-2765

Great job getting the home sold--it can be tough if there isn't a back up offer in place to fall back on!

March 15, 2012 12:00 PM
Ambassador
1,657,323
Barbara-Jo Roberts Berberi
Palm Harbor Florida Residential Real Estate
Charles Rutenberg Realty

Backup offers are great but here the buyer often requests that NO backup offers can be accepted. It is an option available on our contracts. A simple check of the right box and it is done.

March 17, 2012 09:00 AM
Rainmaker
268,282
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

I never understand why some agents and sellers don't want to accept backup offers.  It's also in a buyers best interest to put in a back up offer if they like the house because a lot of times there are people circling waiting for that first offer to go away and once it does the home comes back on the market and bunches of buyers may try to get in on it, but if a buyer already has a back up accepted, voila, into first position.  Everyone is happy. -Kasey

April 14, 2012 09:52 PM
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1,019,433

Celeste "SALLY" Cheeseman

RA, CRS, Hawaii Mililani Oahu Real Estate
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Reading my blog will give you the human side of this Real Estate Industry Professional as well as allowing you to walk beside me through my writing about Hawaii Real Estate & our Local Area. As a resident of Honolulu County Hawaii for 42 years you will get a tour of a lifetime. Specializing in Hawaii Relocation Military VA Home Buyers you can be rest assured you will be in good hands. I LISTEN to YOUR needs and give you sound advice. Hawaii Relocations, Hawaii Military Relocations, Mililani Hawaii Real Estate, Living in Hawaii, Army Navy Air Force Marines in Hawaii. Read more at www.cheesemanhomes.com