Terms such as “pending” or “contingent,” commonly seen in online listings, may be familiar, but what about “active with backup offers”? It’s a scenario in which all parties allow the seller to continue advertising and entertaining additional offers, in case the first accepted offer falls through.
Why would a seller accept backup offers?
A seller may accept backup offers so if the current buyer walks there is another purchaser ready to close the deal. By collecting backup offers, the seller avoids having to remarket the listing, show the home again or sift through numerous new offers, because backup buyers eagerly await the home on the sidelines.
What does backup mean on MLS?
Backup offer means that the home is now in escrow, and an offer has been accepted but the seller and the listing agent are open to a backup offer. If the first offer on the home falls through your offer may be considered by the listing agent and the seller.
Can a seller accept another offer while contingent?
Contingent – With No Kick-Out
This means the seller cannot accept another buyer’s offer unless certain requirements are not satisfied with the current accepted offer. This is good for the current buyer, because they can’t be “kicked out” unless they don’t meet their contingencies.
What does it mean when a House says under contract backups?
When the seller signs the backup contract, it means that if Buyer 1 should cancel their contract for any reason, Buyer 2 is automatically under contract to buy the home. Multiple backup offers are rare, but are possible as well.
Can you withdraw a backup offer?
Can You Withdraw a Backup Offer? A buyer could withdraw their backup offer; however, they’re still obligated to follow the purchase agreement. If the current buyer does not follow the contract, they would be open to losing their earnest money deposit held in escrow.
Can a buyer back out of an accepted offer on a house?
Can you back out of an accepted offer? The short answer: yes. When you sign a purchase agreement for real estate, you’re legally bound to the contract terms, and you’ll give the seller an upfront deposit called earnest money.
Is a backup offer worth it?
The reasoning behind this is that your backup offer gives the seller a safety net that prevents them from having to reenter the market if their primary offer falls apart. That security may be worth accepting a slightly lower price than the current offer.
What does status backup mean?
Backup – The seller has accepted an offer on the listing, but the seller requests that the property remain on-market to solicit additional, back-up offers. This is an on-market status and DOM will accumulate.
Can you outbid a pending offer?
Do not try to outbid the current pending sale; as stated above, this is a no-win situation. Simply bid what you would have bid on the property anyway considering the home value, the location, and the botional tie that you may have to the house.
Can I outbid an accepted offer?
If the purchase contract hasn’t been signed, the seller could accept another offer, even if you think they’ve accepted yours. The seller generally cannot cancel your contract if you are in compliance simply because the seller received a better offer from another buyer.
Can a Realtor tell you what to offer?
Why Agents Won’t Tell You What to Offer on a Home
While real estate agents can guide a buyer to choose the right number, don’t expect a buyer’s agent to name your precise price. … Here are a few reasons many agents will refuse to tell you how much you should offer on a home: The offer was too low.
What is the difference between pending and active under contract?
Active Under Contract vs Pending
When a property is listed as “active under a contract,” there are conditions/contingencies that must be met before the deal can close. However, when a property is listed as “pending,” all the contingencies have been met and the deal is on the road to being finalized.
What does Pending taking backups mean?
Pending taking backups – This means that an offer is pending, but the seller accepts backup offers if the deal falls through. Submit an offer at your own risk knowing it could take months before you find out if your offer is accepted.
Can a seller accept multiple backup offers?
Sellers can and do accept multiple backup offers. The seller ranks them according to their desirability. So if the primary bid falls through, the first backup offer will be automatically accepted.