Backup offers used to be a fool’s errand in our market, but two recent developments have changed that way of thinking.
Is it wise to write backup offers if you’re a homebuyer?
For years, we told people not to write backup offers because it was considered a fool’s errand. If they did write a backup offer, they often failed to close on the house they wanted because someone else closed ahead of them. These buyers were always seeing other homes. Every time they saw one dream home, another dream home popped up somewhere else.
Two situations in our St. George market, however, have changed this real estate rule of thumb.
First, we have insanely low inventory—less than three months’ worth. That means it would take less than three months to sell every single home currently for sale. Buyers in this case are having a hard time finding what they want to purchase. When they DO find what they want to purchase they’re often getting beat out by 1,2, even 5 other Buyers ahead of them!
UGH. How is this helpful to you as a St. George home buyer?
Because so many folks are writing so many offers on so many homes…(that’s a lot of “so many”), many buyers are “flaking out” on the first offer they wrote. They’re writing offers on properties they’re not sure they even want just to tie the property up, then later cancelling their offer after finding a home they like better.
Enter: your backup offer, stage right!
Knowing that many of the Buyers that beat you out may in fact end up pulling their offer, you write a backup!
This means if you see a home you like and someone else has already written an offer on it: pick up the phone, call your real estate agent, and tell them you’d like to write a backup offer on that home.
If they’re not willing to do that for you, they clearly don’t understand the current real estate market.
Bottom line? There’s a better chance now than ever in our market to score a home with a backup offer.
If you have any questions about the buying or selling process or you’re thinking about buying or selling a home yourself, give us a call. We know this town, and we’d love to help you. Our phone # is 435-216-3888 or email us at email@example.com.