How to Deal with a Multiple-Offer Situation

You finally found it- the perfect home for your family.

It's taken a while to find a home that suits all of your specifications and dreams. This home has the double master closets, a cozy den area, enough bedrooms for all the kids, and even a pool! It's perfect and just barely came on the market! But you hesitate to make an offer, wanting to be sure...

In that hesitation, someone else swoops in and makes an offer on your dream home.

Now what?

Despite what it may look like, hope is not lost. Many sellers accept BACKUP OFFERS, even when they have already accepted a first offer. Home purchase transactions fall through for all sorts of reasons, from contingencies not being met to financing issues. In the event this occurs, your backup offer will become the primary offer!

Of course you are not tied to the property after you make a backup offer. If the original offer closes successfully, you will be released from the contract and any earnest money will be returned. Also, if you decide to withdraw your offer before the original offer closes, you should be able to (but check with your real estate agent to be sure). Many sellers, like Christy Strother, a past client of ours who started with a backup offer and was able to buy her dream home, continued looking for homes while the backup offer was still on the table. Even so, you should only make an offer if you're serious about purchasing the house.

Backup offers are more common than you might think. Especially in a competitive, low-inventory market like we're experiencing now, buyers must act quickly and decisively to get the home they want. But even if someone else has moved ahead of you, don't be discouraged- ask your real estate agent about backup offers!

Listen to Christy Strother's story about her backup offer! Since this video was filmed, the Strothers have successfully closed on their home.