Miami real estate news and information

“B” for Back-Up … “You’ve always got to have a plan” … and Selling Real Estate is No Different!

Real estateYears ago, my 4 year old and my 8 year old were bickering in the car while we were on vacation in Yosemite National Park …  I was driving … and my Dad was with us.    I stopped the car, and suggested that  the two boys hop out, because the rest of us really didn’t want to hear any more of their shenanigans….  I pointed to a log where they could take their discussion,  and pulled the car up a few feet,  stopping  behind some shrubs.   We could see the boys, and we could hear their conversation.      (They probably wondered if  we would really leave them there …  so quickly abandoned their adversarial position).  The  little one asked  his brother  “OK… what do we do?”    Big brother shrugged.   The little one continued ” Come on… tell me.  You’ve always gotta have a plan.”    (He was four!)   They were  ‘friends’ again …  ready to get back in the car …  enjoy the vacation (and each other).  And we still smile, remembering the little one telling his brother that he should always have a plan.

In Real Estate… you need to have a plan.   Having a back=up offer is PLAN B.    I rarely take a back up offers on property I  list for sale …  but occasionally I do … if there’s a good reason.

Why would anyone take a back up offer?   And then the next question would be  “Why would anyone make one?”   If  you question whether or not a deal will close…  having another offer sitting in the wings might be justified.   Reasons for a real estate transaction falling through can be several.  It could have to do with  specific financing contingencies, appraisal,  inspections, the lender, the  loan approval process …or questions as to whether the buyer will have the  resources to close within the alotted amount of time.   While an offer or the terms might  be sufficiently attractive  to warrant giving the first buyer every opportunity  …  Plan B (B FOR BACK UP)   protects the seller by having a second buyer in line, and therefore  NOT  having to start from scratch looking for a new prospect   if or when that  primary position buyer fails to come through. Plan B is a security blanket.

AS THE BUYER:   Why put a BACK UP OFFER on a property already under contract?   Why not just find another house…  find your  OWN house … one without another offer ahead of yours?   Maybe the house (location, price, terms, amenities, upgrades)  are  better than anything else out there, and worth giving it a shot.   The downside?   You’ll have to sweat it out, until the first buyer fails to perform.  (That wait can be torturous).  The upside?   You would be next in line, having negotiated out the terms you want (just like  you would with any contract offer) …   if /when that  primary position buyer fell by the wayside, YOU’D get the house. What are the questions if you’re the buyer putting in a back up offer?  Would you even want to put in an offer on a house that was already under contract with another buyer?  Worth it?  It all depends on the house,  the situation, and you (and whether you can stomach the wait).

AS THE REALTOR, I can count on one hand the number of times I’ve taken back up offers.   There’s no question but that it puts pressure on the first buyer to come through.     

AS THE SELLER:  Why would you take a back up offer?  Why not just from scratch if the deal fell through?   A back-up offer provides you with  security.   The first offer may be attractive enough for whatever reason… worth taking your property off the market for.   It may be worth giving the first buyer (whose offer is likely very attractive for whatever reason) an opportunity to come through.    

 Those are  personal decisions.  But then again, there’s a lot about buying a house that is personal . Call us at  305 793-1365 or send us a note here   .  We love  your referrals, and we  look forward to assisting you whenever you are ready to buy, sell or move again.

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