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.
We came across this article in the Boston Globe discussing what relocating workers look for in Massachusetts. Our Jones Team has been helping employees relocate to the Pioneer Valley for decades offering tours of our towns in the area and more. When our family relocated from Tennessee to Amherst 10 years ago after accepting a position at UMass, our Jones REALTOR® not only showed us several homes but also gave us a tour of many towns, schools, gave us information about utility services, local and state taxes and even recommended a flooring company and carpenter once we settled in. She found us the perfect home to raise our two sons in a neighborhood where they made many friends. Marge Roy was our "go to" person for the numerous questions we had about the area long after the move.
Our Jones Team is empathetic when working with a buyer relocating from out of the area. It can be an exciting yet challenging time, especially when you are transitioning children to a new area and schools. I felt that our REALTOR® truly cared about our well-being. After our first winter in New England, in March we received a lovely card with a gift card to a local nursery from her with a message that said "spring is just around the corner." Of course, we discovered spring comes much later here than in the south!
Whether you work with Jones as a buyer or seller, you will receive a questionnaire after your transaction to follow-up with you. Why? Because the reputation of Jones Group REALTORS® is important, and we want to make sure that you are satisfied with your experience every step of the way...because we care. We have 60 agents who are all knowledgeable about the Valley and are here to help with all of your relocation needs, before and after your move.