There’s nothing worse than making a decision to buy a property and having it disappear in a poof of smoke right in front of your eyes! But did you know that offers can be made after a property goes under contract? Did you know that if you make an offer to a seller under contract, that your offer must be legally presented to the seller? Did you know this is true right up to the second of closing?
No Deal Is Complete Until Closing
I met with my clients in January, they were considering building their dream home in South Barrington. We talked through the entire process for about an hour and half. I introduced them to attorneys, builders and answered many questions, interjecting some things they had never even thought of. The buyers had identified a lot they were very interested in. I did some due diligence on their behalf, got the HOA docs to help them understand what building restrictions there were.
I left for a trip to England and they left with a plan of action including contacting the village hall, meeting with architects and builders. On my return we were going to look at a few homes they liked, just to be sure building new was what they wanted. The idea of gutting and renovating an existing home was also a possibility. On my return they let me know they were committed to the build and we did not need to look at any homes for renovating.
A week goes by and I call the buyer and let him know not to wait too long as the lot he was interested in is well priced and in a great subdivision in South Barrington. He understood. On Sunday I was doing my daily review of South Barrington’s real estate activity and slap! There it was, the lot of land had gone under contract. I let my client know right away. We talked on Monday about next steps.
Back Up Offer
My buyers were indeed disappointed and said they had made the decision on Saturday to make an offer with no contingencies, other than an attorney review. The felt that slap on Sunday just like I had, but life is like that sometimes.
Now I make a suggestion they did not know about. Why not submit a back up offer. Contracts are not always good, clear, set to close. They can stumble along the way. So just in case the existing contract stumbles, their offer would be ready waiting in the wings. It’s true there may be other back up offers. It’s only the listing agent and the seller that are privy to that information.
We put together our back up offer. Our offer is asking price, that’s a strategy I recommended for this case. It’s a cash offer, there are no soil contingencies. Normally land lots are subject to soil testing but in this case the lot had previously supported a home that had been removed. Because my buyer had done a lot of due diligence he was comfortable removing that contingency. On March 1st 2016 we submitted his offer.
There were parts of the contract that were written, or dare I say designed, so that if at anytime the prior contract failed, ours would still be valid and could be accepted right away. As my clients were going to be out of town, I would keep in touch and let them know if anything happened. We can wish, right?
A day later – The sellers signed our offer as a back up offer. It was subject to canceling the existing offer. Then we were told the prior offer was to be canceled. It’s none of our business to know why, but would it have been canceled had we NOT submitted a back up offer? I highly doubt it. I can only surmise! It was a bit of a scramble to get this deal closed before my clients left town. Title was already in hand but we needed a survey. That was ordered so we could close on Thursday, just 9 days after submitting our back up offer. Survey complete, closing scheduled!
March 10th 2.30pm Closed
Cash deals can be closed very quickly and 9 days for cash is not that fast. But it is much faster than a financed deal ever could be, for those we are looking at 45-60 days with all the new lending rules, appraisals, buyer documentation, repairs or credits and changes in the buyers loan. We closed the sale! What a nice surprise for my buyers who really thought all was lost. We both said we thought it was meant to be.
I look forward to watching the luxury home be built on the lot. As you can see there is an existing drive. There used to be a house here until it burned down in 2008. I am sure the neighbors will be glad to see more than an empty lot and old driveway, which will be torn up.
Is It Worth Submitting Back Up Offers?
It is a lot of work for possibly no reward on the Realtors side. But that’s not a reason to not even suggest a buyer do this. I have said before I am all about both client relationships and do “The Best” I can possibly do for all my clients. If that means educating clients about every possible scenario, then that’s what I do. If it means putting their purchase to one side to wait for a wish, it’s what I do. If it means scrambling to get an offer in really quick, it’s what I do.
The reward is not a pay check. It’s a happy client. My buyers have agreed to let me follow their home build and to take photos as the house goes up. That’s as rewarding to me as getting the lot for them on a back up offer which could have gone nowhere.
Do You Need A Pro-Active South Barrington Buyers Agent?
Have you ever heard the phrase, “Your natural point of aim”? For me it means doing what I like best in real estate. That happens to be working with buyers, I have a passion for getting buyers what they want. About 70% of my real estate business is working with buyers in the Barrington areas. Whether you want a vacant lot or an existing home, a good buyers agent does a lot more than open doors. Corinne is truly invested in your goals. Read herfor validation.
If you are in need of a South Barrington buyers agent, give Corinne Guest a call at 847-363-3686.
Here are some other vacant lots options in South Barrington.