Long Islander’s Ask What Is A Backup Offer in Real Estate?

What Is A Backup Offer?
On Long Island, a backup offer is an agreement made between a buyer and a seller, where the buyer agrees to purchase the property if the current sales contract falls through for any reason. Essentially, it is a Plan B for the seller in case the current deal does not work out.

Here are some key points to understand about Backup Offers:

  • Backup offers are made when the seller has already has an acceptable offer from a buyer but wants to have a backup plan in case the current deal falls through.
  • The backup offer is a legally binding agreement, and the buyer and seller must agree to its terms, just like any other contract.
  • If the current sale contract falls through for any reason, the seller has the option to accept the backup offer instead of putting the property back on the market.
  • The backup offer typically contains a contingency clause that allows the buyer to back out of the deal if certain conditions are not met, such as the appraisal coming in too low, or the buyer not being able to secure financing.
  • If the backup offer is accepted, the buyer typically has a set period of time to complete their due diligence, obtain financing, and close the sale, just like with any other real estate transaction.
  • If the current sale contract goes through as planned, the backup offer becomes null and void, and the backup buyer is released from their obligations under the contract.

Overall, backup offers are a way for buyers to position themselves to purchase a property that they may have missed out on initially and for sellers to have a fallback option if the current deal falls through.

 

When you’re ready to buy or sell a Long Island home or condo, Call Lawrence Sheila Agranoff,  REALTORS® and Let’s Talk!

Cell: 631-805-4400