The Value of a Back up Offer in Today’s Market

    Hi everyone! Thanks for visiting my video real estate blog. Today, I wanted to talk to you about the importance of having a back up offer in our crazy market.

    I have Seth, one our lead buyer specialists, here to tell us about a recent experience he had where one property had 11 offers.

    The house was on the market for two days. I spoke with the agent and he said to give an offer right away. So, I ran the comps to determine if this house was really worth making the higher offer. We came in at $21,000 over the list price, just to make sure we had a chance at it.

    How did you decide to come in at $21,000 over?

    I knew that the comps were there and the house had been updated. We actually lost that battle. We lost to someone who went higher and had a full price cash offer.

    What I’ve learned is cash offers come out of emotion. I convinced the agent to let us do a backup offer; this doesn’t always work but I knew we had a great offer. It turns out 3 days later, the cash offer backed out.

    Out of the other 11 offers, did any others submit a back up offer?

    No, they did not. We went from being desperate to get the house to the seller needing us, and it was all by just staying in contact.

    So whether you are a buyer or seller, having a back up offer is crucial in this process. There is a huge value in submitting a back up offer!

    Thank you for watching.

    Trackback from your site.

    Leave a Reply