Aug 16, 2022
Should you accept an offer in second position?
Accepting an offer in second position has upsides and downsides. Learn about the best situations when for making and accepting second offers and when to avoid it.
Accepting an offer in second position has upsides and downsides. Learn about the best situations when for making and accepting second offers and when to avoid it.
When there are multiple offers received on a property, it’s wise for the seller to protect themselves with a backup plan. Should something fall through with the first offer (such as a financing condition), that second offer comes into play and they are under a legal obligation to proceed with it. This will avoid the hassle of having to relist the home, go through all the visits again, and finding another buyer with new conditions.
For buyers: although being the first accepted offer is ideal, I’ve seen it happen on more than a few occasions to get the home second in line! No matter the outcome, this tactic is always worth a try!
In situations where homes gets multiple offers, sellers are often given the option to accept the second offer, which acts as a backup if ever the first offer falls through. Let’s look at this from both the buyers and the sellers perspective, as there are important things to note from both sides in deciding whether taking a second position is the right move or not.
A backup offer is ideal for someone who has a relatively tight timeline to sell their home. Let’s say you already have an accepted offer on your next home and need to sell your current home with a certain timeframe for the deal to go through.
Having a secure backup offer means that if for some reason the first offer doesn’t go through because of financing or any other condition, then you can move forward with the next buyer without having to put your home backup on the market and go through the showing process all over again.
The most important thing to note is that if the first offer doesn’t go through, you are legally bound to proceed with the offer you accepted in second position. This means it’s important to decide if you’d be happy with it either way.
The most notable thing for buyers to consider is that while you’re in second position, you cannot make offers on any other homes. And you have to wait to all the conditions clear on the first offer before doing so.
But I do often suggest to my clients to take the second position because I can tell you it’s happened on more than one occasion that we have gotten the house.
In market conditions where there’s less inventory like right now, it can give you an extra chance of getting a home. But when it’s a more balanced market, homes are coming up less often, it’s less of a risk.
As with everything, the right choice becomes a personal one. And understanding all the details, really helps to make the right decision.
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