July 20 Market Minute - What's Your Backup?



Introducing the Monday Market Report! In this new series, I'll bring you the latest data from the local MLS and discuss an item or two that I hope buyers and sellers will find useful.

In this episode, I discuss backup offers. When a seller accepts an offer to buy their property, they have the option to switch the listing to either "Under Contract" or "Backup" in the MLS. If they choose to go with the "Under Contract" option, they're effectively telling buyers that their home is off of the market and is no longer available for showings. If they choose to mark it as "Backup," they're telling buyers that they have accepted a contract, but the home is still available to show and they're soliciting backup offers. If a buyer chooses to make an offer and can come to terms with the seller, an addendum would be used that would create an accepted contract while placing it in a backup position. This means that the "backup buyer" will slide into primary position should the current primary contract fail for whatever reason (due diligence items and financing issues often cause contracts to fail). This is advantageous for both the buyer and the seller. If their primary contract fails, but they have a backup contract in place, the backup contract slides nearly seamlessly into primary position. For the buyer, their dream home could be under contract, but if they're able to get into a backup position, they'll be able to get their dream home if the primary contract fails, without having to compete with buyers all over again. While not all contracts fail, a backup contract is a fantastic thing for both buyers and sellers to consider.

Welcome to our Blog!
July 27 Market Minute - What's an MLS?

July 20 Market Minute - What's Your Backup?

JUST SOLD charming Murray home

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