What Buyers Must Know About Submitting Offers on a Property That’s Under Contract

Can you submit an offer on a property that is under contract? Let’s discuss this common question today.

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Can a buyer make an offer on a home that is under contract?

This is a question I hear all the time. Technically, the answer is yes. Buyers can make an offer on any listing at any time. The catch is that sellers are not able to accept offers while under contract with another buyer.

They can, however, accept backup offers. Submitting a backup offer allows you to step in if the current buyer terminates their contract for any reason.

Your backup offer may also supercede the first offer if the existing contract is contingent upon the sale of that buyer’s current home. Depending on terms and conditions outlined in the offer, sellers in this situation may have the right to terminate the existing contract and accept your offer instead.

But how do you know whether a property is under contract, and what kind of contract a property is currently under if it is, when submitting a backup offer?
Submitting a backup offer allows you to step in if the current buyer terminates their contract for any reason. ”The best way to determine this is by asking your agent and by looking at the property’s status. If a listing is in “active” status it means the home is available and the seller is accepting offers. “Active option” status means that the home is under contract, and the buyer is within their option period.

“Active contingent” status means the home is under contract and the buyer has finished their option period, but there are some unsatisfied contingencies waiting to be met. And “pending” status means that the home is under contract and all contingencies have been satisfied.

Finally, when you see a property in “active kick-out status,” this means that the home is under contract but that the sale is contingent upon the buyer selling their current home first. This status presents you with the opportunity we outlined earlier, where you may submit a backup offer in case the current deal falls through.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.