Read time: 3-4 minutes.
Imagine you visit an open house and find your dream home. The agent tells you it's already under contract but suggests you submit a backup offer "just in case". It feels like a chance worth taking — but is it really in your best interest?
Submitting a backup offer is like waiting in line for someone else's date to cancel on them going to the movies. Would you pay for your taxi, movie tickets and dinner if you did not know if someone was going to show up?
For you to secure the property, several unlikely events must occur:
During this time, you're investing emotional energy and possibly money into a situation that's unlikely to benefit you.
Over last three years, I've witnessed only two backup offers succeed. Agents often promote them to keep buyers engaged, but the reality is that backup offers seldom result in a purchase. They often fail due to:
If you're still inclined to submit a backup offer, take these steps to protect yourself:
In most cases, backup offers serve more to benefit agents than buyers. Rather than submitting a backup offer, it's wiser to ask the agent to notify you immediately if the existing deal falls through. This way, you can make a fresh offer without the stress and expense of waiting.
