For more than a year, would-be homebuyers have needed to be more creative than ever to make their offers more attractive to sellers. The market dynamic is changing with interest rates going up, but buyers still need to look for every possible advantage.
The stock of available homes out there is still far lower than their demand, especially in the Pioneer Valley. With that in mind, you may find yourself making an offer on a home that already has qualified buyers bidding on it. This can be troublesome, but a backup offer will help you move toward your goal.
You've found the perfect property; however, the seller has accepted an offer. That would seem to be an open and shut case, and in some situations, it is. But in others, a backup offer can help you stay in the game.
As you make a backup offer, you acknowledge that another offer has already been made and accepted. However, you can have your offer considered first if anything happens to cancel the offer ahead of you.
When Is a Backup Offer Helpful?
Backup offers are usually not very helpful when your competitors are "cash in hand" buyers, such as real estate investors. But a backup offer can come through and make a difference in various other situations. They are especially useful in cases where the other buyer pulls out for their own reasons.
A backup offer takes the form of a formal written contract that should be overseen by your real estate agent. It is vital to protect your interests by designing your offer so you can withdraw without penalty if needed — for example if a home inspection turns up issues.
What Happens If the Original Offer Goes Through?
If the original offer on the property goes through, you'll get back any earnest money you placed into escrow as a potential buyer. You are released from any other obligations and can continue your home search as normal.
Can a Backup Offer Result in a Better Price?
In today's competitive market, a backup offer needs to be strong and offer incentive for the seller. In a slower market, it may be possible to save a few thousand dollars by making a backup offer below the asking price. This can also be appropriate if the home has been on the market for a long time and seems difficult to sell.
In most cases, a backup offer delivers very little risk and high potential rewards. Work with your real estate agent to develop a backup offer that meets your needs. It may just win the day, even if you weren't first in line to buy the home.
If you would like to begin your home search journey - feel free to reach out to our experienced Team of experts here at Jones Group Realtors.
Located in one of the Pioneer Valley's most distinctive neighborhoods, this timeless reproduction Post and Beam home is in a category of its own. The attention to detail, care, and warmth is evident with "12 over 12" custom milled windows, a uniquely crafted mantel in the living room, hardwood floors of both cherry and oak, and a beautiful, bright and enjoyable year-round sunroom complete with a propane stove to keep you toasty on cool weather nights. There is a possible in-law space on the lower level, and a wine room. The exterior boasts a roof with 5/8-inch sawn shakes, new clapboard, copper flashing and mahogany trim. A new large koi pond with waterfalls, lighting, and aquatic plantings, abundant gardens, patios and decks, as well as a charming stone-walled entrance provides a park-like setting. The surrounding communities offer five colleges, three private schools, and a highly rated public school system nearby. You must experience this fine property with meticulous detail and beauty with memories waiting to be made.
Leverett is located in beautiful Western Massachusets three hours North of New York City and two hours west of Boston. The Amtrak Vermonter services nearby Northampton with service from St. Albans, Vermont through Washington, D.C. Bradley International Airport is approximately 45 minutes South.
Listed by the Stiles Dunn Team.
Karen Stiles Dunn 413-336-4440; Luke Dunn 413-800-1155