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Ah, okay. "Contingent" makes much more sense (and is more descriptive), and I'm pretty sure that's how the Virginia MLS worked when I lived there.
Do people write many backup offers? It always seemed like sort of a waste of time to me - no matter how much I liked a house once it went under contract I'd just move on.
No, not enough people write back ups.
If the house is "Perfect" and time is on your side, a Back up offer can be a great strategy.
Once you have a back up contract, it is just as valid as the standard contract.
If the first contract in place terminates, the parties have to proceed to a logical end with the back up contract, and the Seller cannot set aside the back up contract to accept another offer.
A back up contract places you ahead of all the people who think it is not worthwhile and won't write one, but tell the Listing agent, "If it falls through, call me..."
The Back Up Buyer under contract stops those calls short.
There are many stipulations in the back up offer form to protect and inform the parties as to the ramifications of that agreement.
It is the "bait and switch" method that car dealers use. The house you are interested in is already sold, but you don't know that because they left the sign up. When you call to ask about it the Realtor says, "oh, I'm sorry, that house just sold but if you liked that one I have the perfect home for you". It is a sales tactic used for the benefit of the Realtor, just like a car dealer uses to lure people into the sales office. I see it being used a lot more now that the market has slowed a bit. The Realtors will say it is for backup offers, but in reality almost no one ever puts in a backup offer. Once a house is under contract, other potential buyers will prefer to move on to the next home.
Remember, Realtors can be a great tool, but in the end they are in the business of making money off of people that sell homes. Their main motivation is to get money from you. I have yet to meet a Realtor that sells homes for free, because they like you. It is a business like any other.
The first paragraph in this post is nearly absolutely inaccurate.
An agent who pulls a house off the market before there is clarity in the transaction is definitely not serving the Seller properly.
For the agent to pre-empt the opportunity for Back Ups because they are underutilized, without tacit Seller agreement, is irresponsible.
The first paragraph in this post is nearly absolutely inaccurate.
An agent who pulls a house off the market before there is clarity in the transaction is definitely not serving the Seller properly.
For the agent to pre-empt the opportunity for Back Ups because they are underutilized, without tacit Seller agreement, is irresponsible.
I absolutely agree! In today's market if I were selling, I would absolutely want my house in MLS up until the day it closed. Keep marketing it and create that back up list. Because it "ain't over" until the loan funds and the title records.
The first paragraph in this post is nearly absolutely inaccurate.
An agent who pulls a house off the market before there is clarity in the transaction is definitely not serving the Seller properly.
For the agent to pre-empt the opportunity for Back Ups because they are underutilized, without tacit Seller agreement, is irresponsible.
Sorry Mike, but with all due respect a bait and switch is what it is. Some states actually have laws to prevent this abuse by some Realtors. In these states, once a house is under contract, it MUST be removed from the active listing database. This prevents the abuse.
Many Realtors will leave the sign in the yard, but will add a tag that states "Under Contract" or "Sale Pending". This shows potential buyers & sellers that the Realtor is capable of moving homes and that this home is under contract, but is open to backup offers.
Realtors are a great resource to use when selling a home, but they are like any other company one would use for services. The buyer/seller must keep their eyes open to make sure they are not being taken advantage of. Not all Realtors are honest or out for the clients best interest.
I absolutely agree! In today's market if I were selling, I would absolutely want my house in MLS up until the day it closed. Keep marketing it and create that back up list. Because it "ain't over" until the loan funds and the title records.
Sure, as a seller you always want all the advantages you can get. Luckily, some states realize the abuse of the system that some Realtors utilize and have ended the "bait & switch" practice. Remember, there are buyers and sellers, not just sellers. Buyers need to be protected also.
And keep in mind, almost no buyers will actually put in a backup offer. Backup offers can restrict a buyers options going forward and in their minds is a waste of valuable time.
I just put an offer on a home that had been under contract for a month, and will be closing in 2 weeks. I wish that the listing agent would have at least changed the status to "under contract". I wouldn't have gone in, and gotten my heart set on the unattainable!
Sorry Mike, but with all due respect a bait and switch is what it is. Some states actually have laws to prevent this abuse by some Realtors. In these states, once a house is under contract, it MUST be removed from the active listing database. This prevents the abuse.
Many Realtors will leave the sign in the yard, but will add a tag that states "Under Contract" or "Sale Pending". This shows potential buyers & sellers that the Realtor is capable of moving homes and that this home is under contract, but is open to backup offers.
Realtors are a great resource to use when selling a home, but they are like any other company one would use for services. The buyer/seller must keep their eyes open to make sure they are not being taken advantage of. Not all Realtors are honest or out for the clients best interest.
The fact that some states exercise their rights to write laws that differ with ours does not make NC wrong.
It happens in nearly all areas of life.
As a matter of fact, it is nearly irrelevant to the conversation.
(Reminds me of "I-95 goes both ways... )
When you work with a shaky deal and can tell your client that you have a few calls on their property you can follow up on, you learn the value of keeping a home visible.
Some deals are stomach-wrenchers until the attorney's office calls and says, "We just recorded." It's the nature of real estate.
When your Sellers have another Buyer come in and upset a shaky contingency, you see the value of keeping the property visible.
I closed one recently that I was not sure of, and had the "Call me" Buyers in the wings. That would not have happened without the sign and "Active-Taking Back up Offers" status.
That some folks cannot accept that the agent may reap other benefits from properly marketing their property does not make this a "bait and switch."
That sign calls create additional opportunities for the agent doesn't make proper marketing and proper representation of the client some dark conspiracy.
Sure, as a seller you always want all the advantages you can get. Luckily, some states realize the abuse of the system that some Realtors utilize and have ended the "bait & switch" practice. Remember, there are buyers and sellers, not just sellers. Buyers need to be protected also.
And keep in mind, almost no buyers will actually put in a backup offer. Backup offers can restrict a buyers options going forward and in their minds is a waste of valuable time.
All inaccurate, and completely irrelevant to Seller client service.
That Listing Agent's duty is to the Seller, to assure that the property is marketed properly, and to press that until it closes.
Buyers have their own decisions to make, and should do with the best information available.
Back Ups are only one avenue.
Offers on homes that are under Contingent contracts, contingent on the sale of the Buyers' other home are often upset by another offer.
I just put an offer on a home that had been under contract for a month, and will be closing in 2 weeks. I wish that the listing agent would have at least changed the status to "under contract". I wouldn't have gone in, and gotten my heart set on the unattainable!
Now, I gotta say, I'm really sorry to hear that, and yes, there should have been some notification of the status on the MLS or when your agent called.
The Listing Agent didn't tell your agent that it was under contract when your agent called?
Nope - no mention of the status until my agent called to let them know to look for an offer. The kicker - for both of us - is that my offer was better!
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