In Oahu's competitive real estate market, the property you want may already be under contract when you find it. But that does not mean all hope is lost. A backup offer can be your ticket to securing a home even after another buyer has beaten you to the punch.

A backup offer is a written offer that is accepted by the seller and placed in second position behind the primary offer. If the first buyer's deal falls through for any reason, your backup offer automatically moves into first position without the seller needing to relist the property or negotiate a new deal.

Deals fall through more often than you might think. Common reasons include financing issues, inspection problems, appraisal gaps, buyer's remorse, or failure to meet contractual deadlines. Having a backup offer in place means you are next in line if any of these situations occur.

To submit a backup offer, work with your agent to prepare a complete purchase offer just as you would for any property. The seller reviews your offer and can accept it in backup position. Your earnest money deposit is typically held but not deposited until and unless your offer moves to first position.

There are some important considerations when submitting a backup offer. First, you are not committed to the property until the primary deal falls apart and your offer activates. You can continue looking at other properties and can usually withdraw your backup offer at any time before it moves to first position.

Second, consider making your backup offer strong and competitive. Since you know the seller already has an accepted offer, your backup offer should be at or near asking price with favorable terms to motivate the seller to accept your backup position.

Kristy and Austin Home Group frequently helps clients submit strategic backup offers on Oahu properties. In this competitive market, having a backup offer strategy can make the difference between missing out and landing the home you love.