Would it be a good idea to put in a back up contract on a house that is under contract pending?

Dear Ronald,
It can be a good idea to put a backup contract in place even though a house is under contract. Loan approvals do fall through and few people do it.

Let me know if I can solve any real estate issues for you.

Dominik Szabo
UTR - TEXAS REALTORS
(832) 844 1724
DominikRealtor.com
** The Doctor of Real Estate in Houston Texas **
" Professional, Courteous, and Informed "

Absolutely! If you are interested in the house, and think you would like to purchase the home, then by all means get with a REALTOR to prepare the documents necessary to submit your back up offer. Then there is a definite timeline structure where you will know if you have the opportunity to move forward with your contract. There is never any harm in submitting an offer, or a back up offer, just to keep yuor name in the hat!
Good Luck!

Hi Ronald,

Great question!!

Putting a Back Up Contract on a property is completely dependent on what you want to do (and whether or not the property already has accepted a back up).

Here are a couple of things you'll want your REALTOR to find out::
1) Is the current accepted contract contingent on selling a home (chances are if the notation in MLS is "Pending" as you inquired about in your previous post, the answer is "no" and it's a solid contract). Since it is no longer OP, the current Buyer has completed due diligence and moving forward with the purchase.
2) How solid is the current Buyer.. have they made it past their financing approval period, appraisal, etc. (Again, considering it is noted as "Pending" in MLS, it's likely it is solid -- however, you can never been 100% sure until you have your representative reach out).

Imporatnt things to consider:
1) It is negotiated like any of offer, but include the Back Up Addenda
2) Earnest Money (EM) is deposited at the title company with the executed Back Up Contract and Option Fee is paid.
3) There is a termination date of the Back Up Contract and refunding of EM to Back Up Buyer (Option Fee is not refundable). The termination date is how long you want to wait for the house - after option, after financing contingency, day of closing of first contract....
4) If first contract terminates, Buyer receives notice (amended effective date of the Back Up Contract), placing it in first position. All performance obligations are based on the amended date (except deposit of EM and pymt of Option Fee, which were done at final acceptance of back up).

I have worked with Buyers who submitted a backup on their dream home and ended up being first position and closed! I have also had success in having my Seller accept a backup, better than the first contract, and close with the back up contract. It's really based on each specific situation.

Feel free to reach out!

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217

Ronald,

Happy New Year! Great Question! My apologies that the home you desire is pending contract my friend, I know how defeating that can feel. You can most definitely attempt to put in a back-up offer, but please note that some sellers may not always accept the submission of back up offers. Are you taking advantage of a local REALTOR to assist you in this process? If you are not, and do not wish to, you may want to call the listing agent of the home to inquire about the current status and potential for back-up offer submission. However, if you are already employing an agent's services, he/she should be able to see if it is possible, help you weigh the pros and cons, and assist you in making the best decision which fits your needs/wants.

If you do not have a REALTOR on your side, but would like to employ one, I would love to assist you! You can rest easy knowing that you won't pay for my expertise, time, opinions, advice, negotiation skills, or anything since REALTOR services are traditionally paid for by sellers in the Great State of Texas! Feel free to reach out to me directly today and we will get the ball rolling toward securing an amazing home for you! Check out my HAR.com profile in the link below to see what my clients say about me and my service!

Cody Mier
Intero Real Estate Services
(832) 373-9755
cody@interohouston.com

If you love the house & for some reason if the contract falls through you don't want to miss out on the property again I would definitely put in a backup contract. Good Luck on getting your dream home & if you need assistance contact us at 281-346-2112
Stacy Burgin
Terra Point Realty
stacy@terrapointrealty.com

It would be best to discuss this with your Realtor give you the pros and cons to your particular situation. A back up contract is a contract on a home, there are provisions written into it as to length of time, amount of earnest money to be on file etc that you would want to consider. It could also preclude you from placing an offer on another home that may come on the market in the meantime. Your Realtor can discuss directly with the listing agent the probability of closing of the first buyer to see if it is worth your while. I have frequently expressed interest to a listing agent on a property under contract to notify me should something fall through on the current contract - while it isn't as secure as a back up, it often allows my clients the quickest response should the home become available again. If you don't currently have a Realtor, use the "find a pro" tool on HAR or feel free to contact me. Best of luck!

Ronald,

If you have a Realtor, they should be able to contact the listing agent and find out the status of the contract. They can inquire what the confidence level is that it will go through and also ask if they will accept a back-up offer. If they will, it wouldn't hurt to do it. You never know, it just might work out for you. If you don't have a Realtor that is representing you and you are interested in purchasing this house or a similar house soon, I recommend that you find one. I'm not sure what area you are looking in but you are more than welcome to contact me directly at chris@chrispulse.com or call/text 832-567-7123. I'll be happy to explain what representation means and represent you if you choose. If I'm not familiar with the area I'll be able to find a good Realtor who is.

Hi Ronald,
You have nothing to lose putting a back up contract on a house that is already under contract. And if you really like the house, it is worth it. If the buyer backs up during their option period or if their financing falls through, you would have the opportunity to buy the house. There is a specific form of back up offer that your realtor needs to prepare and submit for you.
Let me know if I can assist you. Francois 713 397 8857