With the real estate market doing cartwheels in certain price points, we’re seeing the return of multiple offers. Before anyone gets too excited, these offers are not usually at or above list price, but they do show competition returning in very specific price ranges.
What happens if you find yourself in a multiple offer situation and you aren’t selected to go into escrow? Here are a few things to keep in mind.
First, being a backup offer isn’t a bad position. Online data shows that in June 2025, approximately 14.9 percent of pending home sales nationwide fell through, representing the highest June cancellation rate recorded since 2017. If that happens, the next buyer in line gets an opportunity to step in.
In California, if you’re in backup position, the seller is required to disclose any inspection reports they’ve received during the course of the first escrow under Civil Code §1102.3 (seller’s duty to provide inspection reports and material facts). While you cannot rely solely on an inspection you didn’t order, it does provide additional insight. A prudent buyer should still conduct their own investigations under Civil Code §2079, which outlines a buyer’s right to inspect, but having that extra knowledge can help you negotiate more confidently.
Second, all offers must be presented unless the seller gives written instructions otherwise. This is not optional – it is a legal requirement. Under California Business and Professions Code §10176(g), a real estate licensee can face disciplinary action for failing to present all written offers to the seller promptly.
In practice, if you write an offer after a property goes into escrow, the listing agent must either present it to the seller and return it to you signed as “rejected” or provide you with a written counter offer, placing you in backup position. If the seller has directed in writing that no further offers should be presented, that instruction governs but, without it, every written offer must reach the seller.
Finally, understand that price alone doesn’t always win the day in a multiple-offer scenario. Terms can be just as important, and sometimes more so. A higher offer with requests for concessions – such as credits for repairs – may net the seller the same as a lower but cleaner offer. At that point, the deciding factor is often the strength of financing and the buyer’s ability to close escrow on time.
So don’t shy away from writing an offer even in a competitive environment. Being a backup could give you an advantage and, if escrow falls through, you may find yourself moving from second place to homeowner without ever competing again.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs and the surrounding mountain communities. Reach her at (909) 442-1345, visit www.HomesInLakeArrowhead.com and follow her on social media, @theresagrantrealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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