Sometimes buyers ask about performing showings on properties already under contract or making offers on properties already under contract. I typically don’t recommend it because it's typically a waste of everyone's time including the buyer's and the occupant's, but there are some exceptions:
1. Pending Release
2. “1st Right of Refusal” or “Kickout Clause”
3. Quick Offers on Certain REOs
4. Unusually Unique Criteria
Offers Converted to Backup Offers:
At times, offers made on homes prior to contract ratification with another buyer can be converted to backup offers. These offers are the most viable possibilities of backup offers in my opinion.
Why Offers Made Prior to Contract Converted to Backup Offers are the Best Backup Offers
Differences in How Backup Offers Are Structured
Potential Issues with Backup Offers:
1. If you don't have a solid search going with an agent yet, your time would typically be much more effective with getting an updated search than it would making a backup offer.
2. Holding You Back on Other Offers if You Don't Have the Funds for 2 Properties
3. Payment for Home Inspection May be Needed to Back Out
4. Often, we won’t know what another contract amount is for.
5. No More Showings Sometimes After a Contract Ratified
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