03-28-2009 08:04 PM
I'm new to all of this so I am trying to figure out some of the wording. What does it mean when the status of a listing is listed as " Contingent," or "Back Up Offer?" Can you still make an offer on these listings or are you pretty much out of the running at this point?
03-28-2009 09:07 PM
When you see a listing stating "contingency BOA (back up offer accepted) it normally means that they have an accepted offer in hand but they have not established escrow just yet. This may be because the potential buyer may have an home inspection by a certified home inspector. That being said, the listing agent will show it as contingency and will continue to accept other offers in case the potential buyer does not want the property. So, if you see a property you like, go ahead and put in your offer because the potential buyer may not buy the property.
I know this from personal experience, we made an offer a property, our offer was accepted and we executed our purchase and sales agreement. We however did not give the agent our deposit until we had the property inspected (we did our initial inspection) but once our offer was accepted, we hired a certified home inspector. When I checked on the listing it stated contingency - BOA. As a result of our inspection, we are going to revise our original offer, if they don't accept it, we will pull our offer. So, if others submitted back up offers, they can move forward.
I know this was somewhat long, but just trying to explain somewhat how it works.
03-29-2009 11:44 PM
As others have observed here, Bank-Owned properties often continue to show BOA (Backup Offers Accepted). Many Bank-Owned properties state in the listing, and in the purchase agreement, that the bank will continue to solicit a better offer right up to closing and has the right to accept a better offer.
This sucks, if you are a buyer, but is good, I guess, if you're the taxpayer bailing out the mortgage industry.
If you see a property BOA, and you like it, make your offer; just don't get too excited too soon.
03-30-2009 05:16 AM
I agree, the purchase agreement does stipulate that the bank could accept a higher offer. This however I feel can and should be controlled by the listing agent. For example, once you and the bank have executed the purchase agreement, if the agent changes the status of the listing to pending, it normally will not show up on the MLS listing.
By doing this, you would not be looking to put in an offer on such a property. Your real estate agent who can still see what's going on with the property probably would not be sitting around sifting through pending sales to see if his or her client can out bid the current buyer at the last minute. There are just too many properties out there for this. But again, if you do see BOA, feel free to put your offer in and see what happens.