As anyone who has tried to sell a property knows (except for a lucky few), not every property that goes under contract will close. A contract can fall through for many reasons, some of them unpredictable and impossible to foresee. Many times, if there is a lot of interest in a property, a seller may choose to take a backup offer or contract in order to ensure that, if the first contract doesn’t close, they have other options. Backup offers are typically taken when a listing is already under contract, but still being shown. At this point, two types of contingency offers can be accepted:
- A Backup Offer – this is an informal “verbal” agreement, which has no true legal standing but acts as an expression of intent from both parties should the first contract fall through.
- A Backup Contract – this is a signed and executed contract, contingent upon the first contract falling through. Should the initial contract fail to close, the backup contract is automatically put into place. This type of backup holds more security for both buyer and seller than does a simple offer.
If you’d like to learn more about backup offers and contracts, or about Asheville real estate in general, contact Asheville Cash Buyers at 828-222-6443 or at AshevilleCashBuyers.com.