Back-up offer
An offer accepted in second position while another offer is under contract. If the first deal falls through, the back-up becomes the primary contract without going back to market.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up: under contract
Part 1 of 4
Why a seller cares
A signed back-up means a buyer's financing falling through sends you to the next contract instead of back to the market. It also tends to keep the first buyer honest at the repair table.
Part 2 of 4
A simple example
You accept $305,000 from the Lees. The Nguyens offer $300,000 and sign it as a back-up. Three weeks later the Lees' loan is denied.
| What happens to the first deal | What the back-up does |
|---|---|
| It closes | The back-up ends; the Nguyens' deposit goes back to them |
| The Lees' loan is denied | The Nguyens' contract moves into first position the day you give notice |
| The Lees ask for $8,000 in repairs | You can decline knowing another signed offer is waiting |
A back-up is a contract that waits its turn, and nothing about it depends on going back to market.
Part 3 of 4
What people get wrong
That a back-up is just a name on a list. It is a signed contract, and a buyer in back-up position usually can leave whenever they like until it moves up.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines back-up offer in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.