What is a backup offer
on a New Jersey home?

A backup offer is a signed offer that a seller accepts in second place, behind a buyer whose contract is already in place. If that first contract falls through, the backup buyer can move up, usually without the home going back on the market.

In South Jersey you are most likely to come across one when a home gets several offers and yours is not the one picked. Instead of walking away, you can ask to be next in line. A seller may welcome it, because a first contract can still fall through over a problem with the mortgage, the inspection or the appraisal.

Say two buyers make offers on a home in Gloucester County, and the seller picks one of them. The other buyer signs a backup offer. If the chosen buyer's mortgage falls through a few weeks later, the backup offer can move into first place.

Thinking about a backup offer? Your agent can walk you through how one usually works. What the terms of your contract mean for you, including whether you can take back your backup offer, is a question for a licensed New Jersey attorney.