Sold? Or shades of gray?

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Published Date 8/8/2025

You made the offer, it got accepted, and now you’re in escrow, going through the perfunctory inspections and fine-tuning your financing. But when you go online and check the listing a few days later, the house you thought was in the bag is marked as “accepting backup offers.”

Realtor.com’s Elissa Suh asks the question: What does that mean—and should you be concerned?

“In today’s competitive housing market, it’s not unusual for sellers to hedge their bets, especially during the early stages of a deal,” she says, saying that even though a house is in escrow, it’s technically still on the market. Nothing is over until you hear the words, “You’re on record” and the keys are handed to you. But don’t hold it against the listing agent.

Accepted offers aren’t always slam dunk closings. Between acceptance and closing, there’s a contingency period where things can still go wrong. And the listing agent isn’t going to take chances. You still must secure your mortgage, place funds into the designated accounts, complete any and all home inspections, finalize the appraisal, sign the paperwork, and then — and only then — sign the deed. And any one of these steps can raise red flags or cause delay. If you’re unable to get a loan or the inspection reveals significant issues and you decide to walk away, the seller is holding the proverbial bag — which is the reason many MLS listings remain marked as “accepting backup offers” even after an offer is accepted.

“Until the contingencies are removed, the sale isn’t locked in,” says Suh. “Sellers are within their rights to entertain alternatives. It can feel disconcerting, but it’s legal and increasingly common in competitive markets where sellers want maximum security.”

From a seller’s perspective, a backup offer provides a Plan B — a backup offer is a signed contract that becomes active only if the original deal collapses. This allows the seller to move forward quickly with another buyer without relisting the home, having to prepare for more open houses, and/or starting negotiations from scratch.

Shoe on the other foot? If you’re buying in a competitive market, your agent may even encourage you to submit a backup offer on a house because you never know what can happen. It can put you next in line for a desirable property if the initial buyer drops out.

It might feel like a dirty pool, but sometimes listing agents also use backup offers as leverage, whether to encourage the first buyer to move more quickly, or to maintain negotiating power if new concerns arise during inspection or financing. “And because backup offers are binding, buyers submitting one should be fully prepared to go through with the purchase if the opportunity arises,” says Suh.

“Clear, proactive communication with your agent can help you avoid surprises, whether you’re already under contract or considering submitting a backup offer,” she adds.” In some markets, this listing language is standard until all contingencies are cleared; in others, it might signal that the seller has doubts or wants to keep their options open.

The best way to keep yourself from freaking out over it is to make sure you’re staying ahead of every deadline (financing, inspections, and paperwork) to prevent your home purchase from stalling. “The more buttoned-up your side is, the less leverage a seller has to entertain alternatives,” explains Suh.

If you ARE the backup buyer, understand what you’re committing to: Your backup offer becomes a done-deal, binding if the primary one falls through. You won’t get to renegotiate terms later, so only move forward if you’re fully prepared to buy the home as is, at the agreed-upon price and timeline,” advises Suh.

Realtor, TBWS

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