Can You Make an Offer on a Property under Contract

As a potential homebuyer, you may be wondering whether it`s possible to make an offer on a property that`s already under contract. The short answer is yes, it is possible, but there are some important details to consider before you decide to move forward.

Firstly, it`s important to understand what it means for a property to be under contract. When a seller accepts an offer from a buyer, they enter into a legally binding contract that sets out the terms of the sale. This could include the price, the closing date, and any contingencies or conditions that need to be met before the sale can be finalized.

If you`re interested in making an offer on a property that`s already under contract, you`ll need to work with the seller`s real estate agent to submit what`s known as a backup offer. This is an offer that`s kept on file in case the original contract falls through for any reason.

Submitting a backup offer can be a smart move if you really love the property and are willing to wait it out to see if the first deal falls through. However, there are some potential pitfalls to be aware of.

Firstly, there`s no guarantee that the first deal will fall through. If the buyer in the first contract is able to meet all the contingencies and conditions, the sale will go ahead as planned and your backup offer won`t come into play.

Additionally, your backup offer may not be as strong as the first offer. The seller may be less inclined to accept a backup offer that`s for a lower price or with less favorable terms than the first offer they received.

Another factor to consider is that if the first contract does fall through and your backup offer is accepted, you may need to act quickly to finance the purchase and move forward with the sale. Depending on the terms of the original contract, you may have a limited amount of time to secure financing and close the deal.

In summary, making an offer on a property under contract is possible, but it`s important to do so carefully and with the guidance of a knowledgeable real estate agent. If you`re willing to wait and have your heart set on a particular property, submitting a backup offer can be a good strategy. However, it`s important to understand that there are no guarantees and the process can be complex. Be sure to weigh all the factors involved before making a decision.