Short Answer
A backup offer is a secondary offer that becomes active if the primary contract falls through. It puts you in position to buy the home without any additional effort if the first deal fails. There is usually no downside to submitting a backup offer since you are not obligated if you find another home in the meantime. Backup offers can be a smart strategy in competitive markets where homes go under contract quickly.
A backup offer works exactly like a primary offer but goes into effect only if the current contract terminates. The seller can accept a backup offer while remaining under contract with the first buyer. If the first buyer's deal falls through, your backup offer becomes the primary contract. The main advantage of a backup offer is that you get second in line without having to wait for the first deal to fail. If the first deal closes, your backup offer expires and you owe nothing. You can continue looking at other homes and even go under contract on another property while your backup offer is in place. Just make sure your contract allows you to withdraw the backup offer if you find another home. Backup offers are most effective in markets where homes sell quickly and the first deal has a reasonable chance of falling through. Homes with many contingencies or complex financing are good candidates for backup offers.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I always consider submitting a backup offer on homes my buyers really want. You never know when the first deal might fall through. I have seen backup offers become primary contracts more often than you might think. If you love a home that is already under contract, let us submit a backup offer. There is no risk, and it keeps you in the game.
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