Buying my first home, put in a competitive offer that finished 2nd place. Sounds like it was not price related but due to us wanting a slightly longer option period (mainly due to the holiday this week). The other offer had a 5 day option which I couldn't get comfortable with, again, given the holiday this week. Seller has told my agent we can be the backup offer in the event the current buyer backs out, financing falls through, etc.

Is there any advantage to accepting this? The benefit to me is if the current deal falls through, the seller wouldn't re-list the property, it would just go to us. But it seems like this really just gives the seller more negotiating power over the current buyer (like not agreeing to make repairs because "we have another offer"). In any case, I'm not getting my hopes up, but wanted some second opinions on this. Thanks!

Remember that the house is only worth what the second best offer is.

While the first buyer is negotiating, the house is worth whatever your offer is. The second that offer vanishes, the house is now worth whatever the person behind you offered. Tell them that if the first buyer walks, you need to have your offer reduced to $1 more than the third offer. Otherwise they can relist, and you might offer more or you might offer less. (Hint: offer less)

Yesterday said:

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I'd put an official second offer in. You still have the option period to back out.

If you want the house don't take nerd's advice. That's advice for someone making a business decision. If you want the house and the buyer comes back to you I would hold negotiations to the inspection.

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I don't really agree with agnerd but this should be a business decision....I mean it's likely the largest purchase of your life, why wouldn't you look at it like a business decision?

Emotions just get in the way and get people in trouble.

The entire reason the seller is wanting a back up offer is also a business decision. More negotiating power or, worst case, it falls through and someone else is waiting without having to go through showings again but now answering the question every buyer will have of "what happened".

Not surprised. Realtors can add data on fall throughs but they happen. People get cold feet, circumstances change, better options elsewhere etc. I'd guess 15 maybe 20%? That might be high but does happen

Thank you! Let's hope everything checks out during the option period. So nervous about such a large purchase (for me) but really excited

Now on to inspection. I tell first timers don't freak out reading your first report. The inspectors job is to nit pick the heck out of the house. Create in your mid two buckets. One is major repairs and the other is a trip to Home Depot.

Big bucket is five items, foundation, roof, HVAC, plumbing, electrical/hot water. Those have to be addressed and the rest is a 10 minute trip to the closest store.

I promise after a year or two you can drive to HD blind folded.

Hungry said:

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Thank you! Let's hope everything checks out during the option period. So nervous about such a large purchase (for me) but really excited

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Ask for the first buyer's inspection report and why they backed out.

Martin Q. Blank said:

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Hungry said:

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Thank you! Let's hope everything checks out during the option period. So nervous about such a large purchase (for me) but really excited

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Ask for the first buyer's inspection report and why they backed out.

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I did and we reviewed it, sounds like a personal circumstance rather than a major issue. All the issues in the inspection we were already aware of, though we did negotiate the price down the account for the cost of repairs

Congrats! We were the backup offer on our home. Sometimes things just work out.

SteveBott said:

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Now on to inspection. I tell first timers don't freak out reading your first report. The inspectors job is to nit pick the heck out of the house. Create in your mid two buckets. One is major repairs and the other is a trip to Home Depot.

Big bucket is five items, foundation, roof, HVAC, plumbing, electrical/hot water. Those have to be addressed and the rest is a 10 minute trip to the closest store.

I promise after a year or two you can drive to HD blind folded.

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Glad we got our own inspector rather than blindly relying on the one the previous buyers got. Our guy found several things I am concerned about. Namely some issues with the previous foundation work and some 'organic growth' under the house. It also needs significantly better ventilation both in the crawl space and the attic. Most of the outlets in the house are not grounded. Not ready to back out just yet but I have some serious concerns. Foundation company is coming out to give us a better idea of what needs to be done