Seeing your perfect home go from active to pending before you could write your perfect offer can be seriously disappointing! Writing a backup offer in case things fall apart — which they do, at a surprisingly high current rate of roughly one in four — can feel like an exercise in futility. But that’s not necessarily the case! Here are the top three reasons escrows fall through and you should write a back-up offer:
The loan process can be a tricky one to navigate, especially without expert and proactive guidance from both your lender and agent. During the typical 21-day loan contingency period, we have seen people shift their finances in such ways that seriously puts a deal in jeopardy. Moving money around, paying things off, changes in employment or a million other things can take a deal right off the tracks. If you’re in backup position, you can step right in, without missing a beat (sometimes even with expensive inspections out of the way!).
Caveat Emptor means “Buyer Beware”, and any agent worth their salt will advise a minimum of a home inspection to make sure their buyers know exactly what they’re getting into! Home, pest and drain inspections can reveal a multitude of costly impending repairs that would escape even the most discerning, knowledgeable buyers. Zoning inspections can seriously complicate things as well (especially here in Santa Barbara!). Unless the seller is willing to remediate the issues or the buyer is willing to accept them to a degree in negotiations, issues with the property can nix a deal in a heartbeat. Especially if you’re naturally DIY inclined (or want the house enough), being the next in line means your dream house goes to you!
3) Any Reason Under the Sun
Most sales have a 17-day period in which inspections and appraisals take place. During that time, if something comes up (related to the house or not) buyers can walk away with their earnest money deposit intact. Sadly, we have seen many deals fall through because of something as simple as cold feet. Of course, that’s not a good thing to put anyone (especially a seller) through, but it does happen far too often. And you can capitalize on that situation to slide right in!
Everybody wants buyers to be serious and in good faith when they write an offer, and ready for to-be-expected minor issues. But the breathtaking amount and variety of things that pop up and can’t be worked out can and do tank deals (once again, roughly 25% of the time). In these situations, their loss could absolutely be your gain!
If you see your dream home, do NOT hesitate to write that backup offer!! We have proven and effective ways to help people make irresistible offers. So, when your dream house makes itself known, call or text us at 805-698-0351 to ensure it truly becomes YOUR dream home!