What is Backup Offer?
A backup offer is a secondary offer a seller accepts in writing to take effect only if the first deal falls through. It puts the backup buyer next in line without having to restart the search. It can be withdrawn by the backup buyer before it is activated, depending on the terms.
Example: A buyer who loses out on a home submits a backup offer; when the primary buyer’s financing collapses, the backup automatically moves into first position.