4350 Sunridge Dr

Looks Can Be Deceiving

Many assume they can tell a condo from a townhome just by looking at it. If the units are side by side with small yards, they must be townhomes, right? Not necessarily. Some condos have private yards, and some townhomes have no yards at all.

That said, a high-rise unit or a second-floor walk-up is almost always a condo. More simply, if the unit isn’t at ground level, it’s nearly certain to be a condo. But to be sure, take a look at the legal description.

• • Townhomes reference a “lot and block“ in the legal description, often alongside a subdivision name.
    • Example: “Lot 2, Block 1, Smith Subdivision” → This is a townhome.

• • Condos list a unit number and often include the word “condominium.”
    • Example: “Unit 105, Building 5, Smith Condominiums“ → This is a condo.

Financing Differences

Lenders treat townhomes like single-family homes, which typically makes getting a loan easier. In contrast, condos often face extra lender scrutiny because lenders evaluate not just your financial health but also that of the entire condo association.

Lenders may evaluate:

• • Owner-occupancy rate – Financing may be denied if too many units are rentals.
  • Financial reserves – Certain loans may be unavailable if the condo association’s monetary reserves are low.
  • Loan eligibility – FHA and VA loans are harder to secure for condos, and conventional loans may require a higher down payment.

Market conditions also matter. In a strong market, financing a condo may be relatively easy. However, in a slower market, restrictions can tighten, making some condos harder to finance. The bottom line is that all else being exactly equal, a townhome carries less risk. 

So—Should You Avoid Condos?

Not at all! While townhomes generally have fewer financing hurdles, a condo might still be the right choice. The right condo can offer a better location, desirable amenities, or unique features that make it worth considering. Also, budget is always a consideration. You might not find a townhome that meets your needs within your budget. If that’s the case, a well-chosen condo can still be a wise investment. The goal isn’t to say townhomes are always better but to help you understand the trade-offs. Rather than making a blanket recommendation, we’ll help you evaluate each property individually, taking into account your needs, goals, and financing options. 

Our job isn’t just to explain the differences—it’s to help you think critically about what matters most to you. When it’s time to make an offer, you’ll have the knowledge to make a wise decision and a clear understanding of what to expect.

If we simply state our first goal but offer nothing more, it is no more than a platitude. It becomes a statement that sounds great but does absolutely nothing. It’s easy to make a claim in bold print and with enthusiasm but incredibly difficult to a) figure out how to get the seller as much money as possible, and b) communicate the philosophy and methods behind the work. We can’t claim to care about your bottom line and then spend no time thinking about, working through, and actually becoming great at executing.

Our aim is not only to pay for ourselves but also to help the seller net more money than they would have had any realistic chance of netting with anybody else. But if the seller doesn’t understand or trust this outcome, then in our view, the job is incomplete. We want our clients to be certain the premium they invested in selling their property was a wise decision. We don’t believe in force-feeding these conversations if not necessary, but we do want our clients & friends to know we are committed to spending the time required to ensure they fully grasp the value they are receiving.

If you’ve been searching for a home, you may come across a listing marked as Active/Backup or hear about the possibility of submitting a backup offer. But what does that actually mean? And why would a buyer or seller consider a backup contract?

What Is a Backup Offer?

A backup offer is a negotiated and accepted offer that remains in place while another contract is already in effect. If the first contract falls through for any reason, the backup buyer automatically and immediately moves into first position—without having to renegotiate or compete with other buyers.

How Does a Backup Contract Work?

1. • The Seller Accepts a Primary Offer:  The seller has already accepted an offer from a buyer, and that contract is in first position.
   • Another Buyer Submits a Backup Offer:  If a second buyer is interested, they can submit a backup offer, which the seller may choose to negotiate.
   • The Seller and Backup Buyer Agree to Terms:  If both parties reach an agreement (the negotiation process is similar to that of the first contract), the backup buyer signs a contract, but they are not yet in first position.
   • If the First Contract Falls Through, the Backup Buyer Moves Up:  If the original buyer backs out, the backup contract automatically moves into first position, and the home is now under contract with the backup buyer.

Why Would a Seller Accept a Backup Offer? Not every seller wants or needs a backup contract, but in some cases, it makes sense:

• • If the first contract seems shaky:  The initial buyer may have a home to sell or financing concerns. A backup contract provides a safety net.
  • To apply pressure on the first buyer:  Knowing there’s another buyer in place may discourage the first buyer from negotiating aggressively on inspection or other contingencies.
  • To maintain momentum:  If the first contract falls through, a backup offer means the seller doesn’t have to restart the selling process.

Why Would a Buyer Submit a Backup Offer? From a buyer’s perspective, a backup contract can be a strategic move:

• • It locks in the home if the first deal fails:  Instead of competing in a bidding war later, the backup buyer is already in position.
  • It allows buyers to stay in the game with minimal risk:  A backup contract doesn’t usually require immediate earnest money or full commitment unless the first contract falls through.

Is a Backup Offer Always a Good Idea? No, not always. Every situation is different, and a backup contract isn’t always the best move for either party.

• • Buyers:  You may not want to wait around for a deal that may never fall apart.
  • Sellers:  You may prefer keeping your options open rather than locking into a second contract.

That’s why we always evaluate the market, your goals, and the specifics of the situation before making a recommendation. If you’re considering making or accepting a backup offer, we’ll discuss the pros and cons so you can make the best decision.

Once your home goes under contract, you’ll need to decide how you want to handle future showings. While your property is available for anyone to purchase, the listing status is marked as Active. But once you accept an offer, we have two options for updating the status:

1. • Active/Backup – This tells buyers and agents that your home is under contract, but you are open to receiving backup offers – which means you are still open to showings.
   • Pending – This signals that you’re confident in your current contract and are not considering additional offers or showings.

What Happens If You Choose Active/Backup?

If you decide to keep your status as Active/Backup, it means you’re open to receiving backup offers and possibly entering into a backup contract. Your home will still appear in online searches, and agents may request showings for interested buyers.

While backup offers aren’t common, they do happen—especially in competitive market or if the property is particularly appealing. If you go this route, it’s important to keep your home in show-ready condition. This doesn’t mean you need perfect staging every day, but it does mean keeping things clean, decluttered, and ready for a last-minute showing. If an agent calls with a request, you’ll want to be able to get the home looking its best quickly.

What Happens If You Choose Pending?

If you mark your home as Pending, it means you’re not interested in further showings. The market will see your home as essentially off-limits, and agents will know that you feel the current contract is strong and almost certain to close. This means you’ll be able to relax a bit and maybe even start packing.

How Do You Decide?

The best choice depends on your home, your contract, and the market conditions:

• • If the market is hot and backup buyers are a real possibility, keeping your home in Active/Backup status could give you a safety net in case your first contract falls through.
  • If your buyer is solid, and you don’t want the hassle of more showings, choosing Pending is likely the better option.

In the end, this decision depends on your specific situation. While the points above provide general guidelines, what’s best for you will come down to factors like market conditions, the buyer’s strength, and your own preferences. The bottom line is that we’ll walk you through your options, offer our insights, and make sure you have all the information you need to make the right choice.