Successful statistic of Backup Offer Request or Kickout Clause (contingencies, agent, sale)
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I sometime see some properties popping up with Backup Offer Request or Kickout Clause / Contingency. How successful is it for the seller to get another offer for such cases? Frankly as a buyer, we rarely filter criteria to look specifically for Backup Offer or Contingent status. So at least for me, those are never on the list.
We bought our current house through a kickout clause. It was in contingent status, conditional on the buyer selling their current house. We put in an offer with no house sale contingencies, and got the house.
I'd say they do work. I'm not in the business, so have no idea how commonly that occurs though.
We bought our current house through a kickout clause. It was in contingent status, conditional on the buyer selling their current house. We put in an offer with no house sale contingencies, and got the house.
I'd say they do work. I'm not in the business, so have no idea how commonly that occurs though.
Did you specifically ask the agent to send the list with those statuses? Or she/he recommended to you?
In my last house hunting, we never got the list of house that has those status. Recently we learnt about it and realized what we could miss. The agent never sent us the list unless it is Listed status.
Ironically, backup offers tend to increase pressure on the first transaction to close... it keeps the first buyer from over-asking for inspection repairs or other concessions midway through.
Did you specifically ask the agent to send the list with those statuses?
I was doing my own hunting via the MLS websites, and was sending the realtor a list of houses to look at. I didn't actually realize it was contingent, till they mentioned it the day of showing. When it was the one we liked the best, it was our realtor's suggestion to put in the bid and bump the first offer.
if there's a national site that tells you the depth of the existing contract status, I'd like to know about it.
heck, if there's any local brokerage website, available to consumers, that shows you which home is contingent on sale vs on closing vs normal contract contingencies, please share.
I can remember only a few backups becoming primary but that's because I've written so few backups. Most buyers don't want to write backups for some irrational reason. I think it's always in the buyers' best interest to write a backup on a property they really like and continue looking for something they like better. The seller is far less likely to agree to post-inspection concessions/repairs with the first buyer if in possession of a strong backup. The first buyer is more likely to cancel the contract if repairs or concessions are denied. In that scenario, badda bing, backup for the win.
Backup contracts are good for both buyers and sellers.
I know this thread is a little old...but wondering about something.
A house we were interested but already had an offer in place the Listing Agent told our Realtor that the first offer is really strong and would be a waste of time for us to write a backup offer.
When I looked on Redfin the house was completely gone/not showing - so I put it out of our mind. But today when I looked through the listings that my realtor sends, I see the house says "Backup Contract". And when I look on Realtor.com it says Contingent - For Sale. ETA: Redfin now shows it as Pending, Estately shows it as Contingent.
Could it be that something changed?
Or do all listings show this way when it's in the process of going through the sale?
Last edited by ginan; 10-03-2019 at 01:06 PM..
Reason: Updated what the websites Redfin / Estately now show
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