If you’re a homebuyer right now, or thinking about becoming one soon, there’s something you really need to know, and it’s not often talked about. It’s called a backup offer.
You might have heard someone say, “Your offer wasn’t accepted, but would you like to be the backup?” That can sound confusing, especially if no one explains what that actually means. In this blog, we’ll walk through everything you need to know about backup offers. We’ll cover what they are, why they matter, and how they could help you win the Downers Grove or DuPage County home you love. This is especially important right now, because if interest rates drop and the market gets busier, home buyers in Downers Grove like you will need to be ready.
Let’s keep it simple, clear, and helpful.
What Is a Backup Offer?
A backup offer is an offer you submit on a home that’s already under contract with another buyer. That means someone else’s offer has been accepted, but if their deal falls through, yours could automatically move into first position.
To be a real backup offer, the seller has to agree to it just like they did with the first offer. You sign a contract, the seller signs it too, and you both agree on the price, closing date, and other terms. You’re not just saying, “Hey, I’m interested if it doesn’t work out.” You’re making a full offer, and it’s waiting in line, ready to go if needed.
Backup Offer ≠ Just Losing Out
Let’s clear up a big misunderstanding. A lot of buyers think that if they submit an offer on a home and don’t get it, they automatically become the backup offer.
That’s not true.
The only way to become a real backup offer is to negotiate and sign a full contract with the seller, and in many cases, put down earnest money just like the first buyer did. Without that agreement in place, the seller is free to take any other offer if the first deal falls through.
So unless you go through the full backup process, you’re not “next in line.”
Why Would the First Offer Fall Apart?
Deals can fall apart for all kinds of reasons. Here are a few common ones:
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The buyer’s loan doesn’t get approved
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The inspection turns up serious problems and the buyer backs out
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The buyer gets cold feet
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The home doesn’t appraise at the agreed price
When this happens, the seller has to start all over again unless there’s a backup offer already in place.
Why Should You Care Right Now?
You might be thinking, “That’s interesting, but I’m not buying yet.” Or maybe you’re taking your time because you’re waiting for interest rates to drop. That actually brings us to the big reason this matters right now.
Interest rates may be coming down soon.
No one can predict the market exactly, but economists and mortgage experts are already seeing signs that lower rates could be around the corner. When that happens, more buyers will jump into the Downers Grove real estate market, many who have been waiting on the sidelines.
That means more competition to purchase homes. More offers. More chances that the Downers Grove or DuPage County home you love gets snatched up fast.
In a market like that, backup offers become a smart way to stay in the game, even if your first offer isn’t accepted.
Real Example: Tall Buyer, Tall Ceilings
Let me share a quick story. We recently worked with a first-time buyer who was 6’7″. His must-haves weren’t just about style, he literally needed vaulted ceilings or homes would feel too tight for him. We moved quickly and found an updated, modern home that checked every box. He loved it, and we got it under contract fast.
But imagine if we’d lost it to another offer. In that case, I would have recommended we submit a backup offer immediately. Why? Because it was the only home that really fit his needs, and I didn’t want him to miss the chance if the first deal didn’t go through.
Pros of Submitting a Backup Offer
Let’s talk about the good side of being a backup buyer:
1. You’re next in line.
If the first deal falls apart, the home is yours. No new bidding war. No starting over.
2. It saves time.
You don’t have to rush back into showings or try to get another offer in quickly.
3. It shows you’re serious.
Sellers appreciate buyers who are prepared and committed.
4. It reduces stress.
You’ve already done the hard part. If the deal comes back to you, you’re ready.
Cons of Submitting a Backup Offer
There are a few things to consider before jumping in:
1. Emotional limbo.
Waiting to see if the first deal falls through can feel like holding your breath.
2. Missed opportunities.
You might be so focused on one home that you pass on other great options.
3. You may never get it.
Many first contracts do close, so a backup offer doesn’t guarantee anything.
That’s why it’s important to talk through your goals and timeline with your agent (hopefully that’s me!). Together, we can decide if a backup offer makes sense for your situation.
What Happens If the Deal Falls Through?
If you’re the backup buyer and the first deal falls apart, the seller will notify you and your contract becomes active.
You don’t need to renegotiate. The price, terms, and closing date have already been agreed to. You just move forward with your inspections, financing, and all the normal steps as if your offer had been accepted in the first place.
Does a Backup Offer Lock You In?
This is something buyers often ask. And the answer is: not really.
Even though you’ve signed a contract, the backup offer doesn’t go into effect unless the first deal falls apart. Until then, you’re not locked in.
Also, if you decide to move on and buy another home, we can withdraw your backup offer before it activates. You always have control.
When Should You Consider a Backup Offer?
Here are a few signs it might be a good idea:
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You found a home you really love, and there’s nothing else like it on the market.
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The seller’s agent mentioned that the first deal feels shaky.
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You’re in a high-demand neighborhood where homes rarely come back on the market.
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You’re prepared and ready to act fast if the opportunity comes up.
As your agent, I’ll help gather information about the deal, the seller’s goals, and whether a backup offer might make sense in your case.
The Bottom Line
Backup offers might not sound exciting, but they’re a smart tool in a competitive market. And I expect competition to heat up fast to purchase in Downers Grove if rates come down.
We’re already seeing more showing activity in some areas. And when more buyers enter the market, homes will move faster and multiple offer situations will return in a big way. Understanding backup offers now can help you stay one step ahead.
If you’re thinking about buying a home in Downers Grove or DuPage County, this is the time to start planning. Let’s talk about what kind of home fits your goals, what areas make sense for your lifestyle, and how we can stay ready, including using a backup offer if the right home pops up.
Want to Learn More?
If you found this blog helpful, be sure to check out my video:
“Backup Offers Explained” on my YouTube channel, Downers Grove Living with The Tully Team.
And if you’re ready to take the next step, whether it’s just talking or getting pre-approved, we’d love to help! Reach out to Shanon at The Tully Team at Platinum Partners Realtors!
📞 Call me: 630.435.3585
🌐 Visit: www.soldbytully.com
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The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Shanon Tully is a licensed real estate broker and leads the The Tully Team at Platinum Partners Realtors located in Downers Grove, Illinois. She provides exceptional concierge real estate services throughout the Chicagoland area, especially the western suburbs. A residential listing specialist, Shanon thoroughly enjoys helping clients achieve their goals, and particularly relishes the unique challenges associated with staging, redesigning, and marketing properties. Her attention to detail and dedicated care for her clients has earned her numerous rave reviews! Among other things, Shanon has earned several designations and certifications including SRS-Seller Representative Specialist, PSA-Pricing Strategy Advisor, RENE-Real Estate Negotiation Expert, SRES-Senior Real Estate Specialist, CSC-Certified Staging Consultant. She is eager to speak with you and always welcomes new referrals! Shanon can be reached at 630.435.3585 or [email protected]