The benefit of making a backup offer is that, if it's accepted, you're automatically under contract with the seller if the first buyer backs out. This means that the house won't go back onto the market and you won't have to fight with other bidders to put in the winning offer.

Why do sellers accept backup offers?

A seller may accept backup offers so if the current buyer walks there is another purchaser ready to close the deal. By collecting backup offers, the seller avoids having to remarket the listing, show the home again or sift through numerous new offers, because backup buyers eagerly await the home on the sidelines.

Are backup offers worth it?

With so few houses available in today's market, buyers can be in a backup offer position if the first contract fails. ... So when someone asks are backup offers worth it, they certainly could be. It should be made clear that a seller doesn't necessarily have to accept the 2nd best offer in a bidding war as-is.