Is it Worth it to Write a Backup Offer in Today's Competitive Market?

In today’s real estate market, uncertainty is driving an increasing number of homebuyers in metro Atlanta to back out of contracts. With rising home prices, fluctuating mortgage rates, and economic uncertainty, many buyers are reconsidering their decisions—even after going under contract. But what does this mean for buyers who may have lost out in a multiple-offer situation? Is it worth it to write a backup offer?

The Rise in Contract Cancellations in Atlanta

According to a recent report from Redfin, Atlanta saw the highest share of pending home sale cancellations in the U.S. in January. Nearly one in five contracts fell through, a noticeable increase from the previous year. Several factors are driving this trend:

Mortgage Rate Volatility – Unpredictable fluctuations in mortgage rates can significantly impact a buyer’s monthly payments, making some second-guess their initial offer.
High Home Prices – Lofty home values, combined with economic uncertainty, are causing hesitation among buyers.
Job Market Concerns – Widespread layoffs and shifts in economic policy have led some buyers to hit pause on major financial commitments.
Increased Inventory – Metro Atlanta saw a nearly 75% year-over-year increase in available homes this January, per a Re/Max housing report. More options on the market mean buyers are more likely to walk away if they find a better opportunity elsewhere.

Why a Backup Offer Could Work in Your Favor

With more deals falling through, buyers who submit a backup offer may be in a great position to secure a home without the stress of a bidding war. Here’s why:

You Get First Dibs – If the primary buyer backs out, your offer automatically moves into the first position, giving you a shot at the home without having to renegotiate terms.
Less Competition – Instead of re-entering a multiple-offer situation, your contract is already in place should the initial deal fall apart.
Leverage in Negotiations – If the seller knows they have a solid backup offer, they may be less willing to make concessions for the primary buyer, potentially leading to a cancellation in your favor.
Peace of Mind – Even if the first contract holds, you’ll have a backup plan in place while continuing your home search.

Is a Backup Offer Right for You?

Not every situation calls for a backup offer, but in today’s shifting market, it could be a smart strategy. If you found a home you love but lost out in a competitive bidding situation, submitting a backup offer keeps you in the game without requiring immediate commitment.

At Team Stephens Orren Shepherd, we’re here to help you navigate Atlanta’s ever-changing market. If you’re wondering whether a backup offer is the right move for you, let’s chat! We’ll guide you through the process and ensure you’re in the best position to secure the perfect home when the opportunity arises.

📩 Thinking about buying or selling? Reach out to us today!