Backup Offer - A term every buyer should know

It is a seller’s market right now in Minneapolis and conversely, that means that it tough for buyers.

Minneapolis real estate has been experiencing low inventory since the start of the summer. Plus homes are being sold in record time. So, the term ‘backup offer ‘ is a must-know term for buyers.

The definition:

When a Buyer is interested in purchasing a property already under contract with someone else, that Buyer has an opportunity to submit a backup offer, in case the first transaction falls apart. Perhaps, the initial buyer’s lending fell through or low ball appraisals.

So, the Seller will have a copy of your backup offer to turn to. By collecting backup offers, the seller avoids having to remarket the listing, show the home again or sift through numerous new offers, because backup buyers eagerly await the home on the sidelines.

This offer must be negotiated and money such as earnest money submitted to confirm it is the next offer in line. There can only be one backup offer legally. So, you can’t have a backup of a backup.