Occasionally a home comes up for sale and you just want it so badly but there is a contract already on it. What can you do?
You can write a back-up offer.
Recently, a buyer of mine identified a house she wanted to purchase. As is the custom in Austin, I called the listing agent and left a message that I had an interested buyer only to find out that the seller had just put the final initials on a contract offer. My buyer tried to find another property that would make her as happy but just couldn't so we wrote a back-up offer.
Here is how a back-up offer works in Texas: The second buyer writes a contract offer for the property and negotiates it to the fullest extent with the seller as if it were the only contract. When everyone has agreed on all the terms, the contract offer goes with the earnest money to the title company and is receipted (logged in as received by the title company.) The earnest money is deposited in an escrow account at the title company and we wait.
We are waiting to see if the first offer is going to fall through. That is most likely to happen over negotiations for repairs or by the deadline for final mortgage approval. The back-up contract cannot supersede the first contract.
If the first deal falls through then the second contract offer comes into play and all the timelines start ticking from the date that the second buyer is notified of the termination of the first contract offer. So for instance the deadline for the option period, the HOA documents, the final loan approval and the closing date are all calculated from the date of the termination of the first offer.
If the first offer closes, the earnest money is returned to the second buyer and the second buyer must look for another home.
If you are planning to buy or sell a house or know someone who is, call me. I want to be your REALTOR®. If you are not in the greater Austin area, call me anyway and give me an opportunity to find a reputable REALTOR® in your area of interest. 512.589.7988 or robin@robinscottrealtor.com
Austin, Texas. Robin Scott, BROKER Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.
Austin, Texas. Robin Scott, BROKER. Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. 512.589.7988.
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