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4 Things Sellers Need to Know About Backup Offers

First Team Real Estate

The only way around re-listing is to accept backup offers, so during the planning phase of your home sale, talk to your listing agent about the pros and cons of backup offers. What does it mean when it says accepting backup offers? What is a backup offer? Backup offers, however, can be tricky.

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What Does Contingent Mean in Real Estate Sales

Realty Biz

They will also get their earnest money deposit back , and the home will go back on the market. In real estate jargon, this is referred to as a “backup offer.” ” In order for a backup offer to kick in, the first buyer would need to relinquish their right to purchase the home.

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What Is an Option Period When Buying a Home?

HomeLight

The home will revert to “option pending” on the market and sellers can only accept backup offers during this time. The earnest money and the option fee are credited to you at closing,” explains Bacak for buyers who move forward. How much is a typical option period fee? Is this refundable?

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Contingent vs. Pending: Real Estate Lingo Explained

RIS Media

The contingent status typically allows the home to be shown to other possible buyers, allowing backup offers to be made. Doing so could mean the forfeiture of their earnest money deposit. Lenders aren’t going to provide money for a property that the buyer’s offer has overvalued.

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Why Sellers Should Add a Kick-Out Clause to Avoid a Contingency Nightmare

HomeLight

If you’ve accepted an offer that is contingent on a home sale and you have added a kick-out clause, your home should be listed with a status such as “Contingent With Kickout. This tells other buyers that the home is still available for showings and backup offers. It’s not instant.

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How to Win a House Negotiation: 9 Expert Tactics for Home Sellers

HomeLight

As interest rates start increasing, as they are right now in 2022 , sellers may not have as many backup offers to consider as they would when rates were low. Price your house right to attract competitive offers. Require a sizable earnest money deposit. You’ll need to return the buyer’s earnest money deposit.

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What Is a Home Sale Contingency?

HomeLight

A kick-out clause acts as a sort of compromise in light of an offer with a home sale contingency. They may be able to accept backup offers as well, depending on how the clause is written. Some ways to make your home sale contingency offer more attractive: Limit the home sale contingency time period. Money talks!