How To Win With a Backup Offer on Your Home

When a home sale is “Pending” that means that there has been an accepted offer on the home.  So that’s it, right?  Your dream home is going to end up in the clutches of some undeserving other family, you may think.  Well, it’s not over until we say it’s over!  (Or until it says SOLD.)  During a pending sale, many things can cause it to fall through.  That’s why many sellers take a “Backup Offer” on the home.  Here’s how to win with a backup offer on your home.

Contingencies can kill a sale.  The most likely culprits are: Inspections, Appraisals, and the buyer’s loan approval.  These elements have killed many sales and left the home seller holding the bag, often with another home already under contract.  That is why a “Backup Offer” can be so appealing.

If you are in a space to wait out a home, you can make a backup offer on a home, and you may be able to sweep in on the home at the last minute.  If you’re currently renting, another month won’t kill you.  With inventory tight, you may want to wait out the home you love, and gamble on that rather than buying a home that you don’t want.  However, you also don’t want to miss out on the low rates available today.

Contact the listing agent and ask.  If they give you any indication that the home sale is in trouble, you can slip in a backup offer and maybe get that dream home.

The first step, of course, is to get pre-approved for your mortgage.

Once you have an approval of funds that will cover the home, make your offer.  Make sure that your money line is absolutely clean, no issues with it.  Maybe even come in slightly over offer (but within your comfort zone!) and look good.

Also, try to be flexible.  Find out what the breaking point may have been on the sale, and make sure that you’re on the same side as the seller.  Let them stay in the home an extra month.  Don’t make them re-do the deck.  Whatever it is to get into the house, if you love it.

Most importantly, stay available.  Make the seller’s agent remember you, maybe with a letter, but with continual contact.  Get yourself out there.  Keep in contact, and you could end up getting that home after all.

If you’re ready to take rising home rates and low interest rates and use them to your advantage, call us at 800-991-6494. You can always apply online at, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?


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