Deciding on 2 houses (appraise, negotiation, sales, inspection)

[mgdriver74]

Home 1 - our absolute favorite - the existing sales contract is falling apart but we won't know for sure for maybe 2 weeks.

Home 2 - our 2nd favorite - we could put a contract on it now.

It's a slow market but picking up. No viable 3rd option (at the moment) but we really need to close on a house in 5 weeks.

I've read something about a purchase option - (and I'm guessing here) - We submit a backup offer on home 1 in case the existing contract falls through. We should know for sure within 2 weeks. If it does, we buy it. We also put in a contract with the option to buy for home 2 - maybe secured with $500. If there is another contract on the house, we have the option of submitting our own bid. If we don't, we forfeit the $500. If we do and win the house, it is ours.

Does this make sense?

[BoBromhal]

don't you have an agent? they would absolutely know what your options are in the state and market you're looking.

in NC, you could put a backup offer on #1, with no financial repercussions to you. And "simultaneously" have an offer on #2. There'd be a period of time when your financial "losses" for #2 would be minimal, while you wait for the end-game on #1.

[ocngypz]

Do you know the how's and why's of the first home's contract "falling apart"?

Did it not appraise?

Buyer having issues with qualifying for loan?

Renegotiation on issues discovered during inspection?

[mgdriver74]

Not exactly sure other than that buyer is having problems with money. They have already delayed their closing once.