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Why Backup Offers Are a Smart Move in Today’s Market You’ve found the home—but someone else already has it under contract. Should you walk away? Not necessarily. In this market, backup offers are more relevant than ever, and here in North Carolina, we have a solid process to make them work. According to Redfin, more than 16% of home contracts were canceled in April 2025 . That’s a big number—and it means buyers who submitted backup offers had a chance to step right in when the first deal fell through. So What Is a Backup Offer? A backup offer is a fully executed contract that becomes active only if the primary contract is canceled . It’s not just “waiting in line”—it’s a legally binding agreement with clear terms that automatically activates when the first deal ends. North Carolina uses a form called the 2A1-T Back-Up Contract Addendum to put all of this in writing. Here’s how it works: You're the Backup Buyer. You sign a contract just like a regular offer, but with the addendum that says it only takes effect if the primary contract falls apart. You Wait, But You’re Protected. You don’t pay due diligence or move forward until the seller gives you written proof the first contract is canceled. You Can Walk Away. You’re free to terminate the backup offer any time before it becomes primary—with no penalties and your earnest money refunded. If the First Deal Falls Apart... The seller sends you written notice and documentation, and now your contract is active. At that point, your due diligence fee is due and timelines like inspections and closing begin. For Sellers: Why You Should Always Take a Backup I always recommend my seller clients consider backup offers. Here’s why: They keep momentum going in case the first deal doesn’t close. They reduce downtime and protect your selling timeline. They can even offer better terms if renegotiation is needed. Why This Matters Right Now Deals fall through for all kinds of reasons—financing issues, inspection problems, cold feet. With more contracts canceling lately, backup offers aren’t just a “maybe”—they’re a smart strategy for both buyers and sellers. Need Help? Let’s Talk. I’ve helped many clients successfully secure homes with backup offers—and I’ve seen firsthand how they can save the day. If you want an agent who knows how to use them strategically, I’d love to help.  📞 Call me anytime, or message me here. I’m happy to walk you through it.