In Oahu's competitive real estate market, finding the perfect home only to discover it already has an accepted offer can be heartbreaking. But there is a strategy that many buyers overlook: submitting a backup offer. Understanding how backup offers work can give you a second chance at securing your dream property.

A backup offer is an offer submitted on a property that already has an accepted primary offer. If the primary deal falls through for any reason, the backup offer automatically moves into the primary position. This can be a powerful tool in a competitive market where deals do not always close as planned.

There are many reasons why a primary offer might fall apart. The buyer's financing could be denied, the home inspection might reveal deal-breaking issues, the appraisal could come in too low, or the buyer might simply get cold feet. Industry data suggests that a significant percentage of real estate contracts fail to close, making backup offers a viable strategy.

To submit a backup offer in Hawaii, your agent will prepare a standard purchase contract with a backup position addendum. This addendum specifies that your offer is in backup position and outlines the terms under which it would become the primary offer. You will typically need to provide an earnest money deposit, though it is usually not deposited until your offer moves to primary position.

One of the key advantages of a backup offer is that it keeps you in the running without taking you out of the market entirely. You can continue looking at other properties while your backup offer is in place. If you find another home you prefer, you can typically withdraw your backup offer without penalty.

When crafting a backup offer, consider making it as strong as possible. The seller has already chosen one buyer, so your offer needs to be compelling enough to make them want to proceed with you if the primary deal fails. Clean offers with fewer contingencies, competitive pricing, and flexible closing dates can make your backup offer more attractive.

Timing matters with backup offers. If you submit your backup offer early in the primary buyer's due diligence period, there is more opportunity for the primary deal to fall through. Your agent can help you assess the likelihood of the primary offer closing based on market conditions and the specific situation.

It is important to understand your obligations as a backup buyer. While in backup position, you should continue your property search and be prepared to move forward quickly if your offer advances. Having your financing pre-approved and your inspection team ready can help you hit the ground running.

At Kristy and Austin Home Group, we have successfully helped many clients secure homes through backup offers on Oahu. Our strategic approach and market knowledge give our buyers every possible advantage. Contact us today to learn how we can help you find and secure your perfect Oahu home.