Back up offers?

I was reviewing our pipeline, and I realized the majority of our closings were on back up offers. So many people don't want to look at homes that have an offer pending, but I wonder if that might be the wrong way to look at things. Is anyone else finding that one of your back up offers is usually the final buyer?

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Permalink Reply by Harry Clay on September 30, 2011 at 3:37pm

I'm in escrow trying to close on a property that has been under contract with SIX different buyers since last March, with countless counter offers from IBM/LBPS / Seterus / National Group.

This is the third approval.

The five previous buyers all walked before the earlier approvals came through.

They were all convinced they could find better, for less, & were sick of the bank taking too long to respond.

They all had agents who insisted their client's were "Totally Motivated" & the offers were "Good as Gold".

What else can you do, but to keep trying?

Maybe I'll finally have success with this 6th batter at the plate. LOL

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Permalink Reply by William F Griffin Jr on September 30, 2011 at 5:28pm

In my experience the 1st buyer rarely ends up in the house. The 1st offer gets the process going, gets the bank to order the appraisal. That buyer gets tired of waiting and the next buyer ends up with the house.

What is aggrivating is pending a property, getting an approval a few months later then the buyer does inspections and does not want the house due to a leaky fuacet. Or they found an REO and closed and moved in while you are trying to get the short sale approved and their agent forgot to let you know.

Now my sellers demand escrow up front and all time periods to begin once under contract, not upon bank approval. The buyer could be out the cost of the inspection but my seller has a lot more to loose than $300.00

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Permalink Reply by Kimberley Kelly on October 1, 2011 at 9:31am

I often close with the first buyers, but always accept back ups..just to be sure. I do not open Escrow with deposits and home inspections. If they are not motivated to buy THAT property, let them walk. If they REALLY want it, they stay in the game..

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Permalink Reply by Jeff Payne on October 1, 2011 at 10:15am

I just took a look, 80% of our buyers who made the first offer end up with the house. The rest are the second buyer with a rare few that go beyond 2nd buyer