Got a solid offer but more buyers are interested? Learn how backup offers work for Utah FSBO sellers, how to write them in the REPC, and when to use them.
You accept an offer on your Utah home. Then your phone keeps ringing. Two more buyers want in, and one asks if you will take a backup.
Should you? For a Utah FSBO, a backup offer can be smart protection, but only if you set it up clearly in writing. Here is how it works and when it makes sense.
A backup offer is a second accepted contract that only moves into first position if your primary deal falls apart.
In Utah, this is handled inside the Real Estate Purchase Contract (REPC) and a Backup Addendum. You are not just collecting extra offers in a folder. You sign a full REPC with the backup buyer with specific backup language that says it is secondary to your first contract.
That matters because the standard Utah REPC has deadlines that start on Acceptance. Without a backup addendum that pauses or modifies those deadlines, your backup buyer could have due diligence and financing clocks ticking while they cannot actually buy the house.
If you are selling without a listing agent, get the exact current backup addendum form from your title company or a Utah real estate attorney. Forms and expectations can change, so verify the current version before you use it.
A backup is most useful when your first offer has some risk.
Consider a backup when:
In those cases, a signed backup keeps your sale moving if the first buyer walks. You do not have to start over with listing photos, new showings, and a fresh round of questions about why the home came back on the market.
It also signals to your primary buyer that others are interested, which can help them stay on track. Do not use it as a threat tactic. Just be factual about your contract position.
If your first offer is very strong - large earnest money, pre-approval letter verified, short due diligence, no sale contingency - you may still accept a backup, but you are less likely to need it.
You can accept more than one backup, but most Utah FSBO sellers only take one good backup to keep things manageable.
Here is a practical process that keeps you organized:
1. Tell every buyer where they stand. Be clear, in writing, whether they are primary, backup position 1, or backup position 2. Do not let anyone think they bought your home when they did not.
2. Use a written Backup Addendum. The addendum should state that this contract is in backup position behind the primary contract dated X, that seller performance is contingent on termination of the primary, and that deadlines are tolled or will restart upon notification. Your title company can explain how they handle this locally.
3. Handle earnest money properly. In Utah, earnest money is usually held by the listing brokerage or the title company. For FSBO, it is typically the title company. Confirm with your title company how they want backup earnest money handled. Some accept and hold the backup check. Others want it held until the backup becomes primary. Get that instruction in writing.
4. Do not allow overlapping inspections. Your REPC gives the primary buyer a right to access for inspections and evaluations during due diligence. Your backup buyer should not get access until they move to primary, unless you specifically agree otherwise in the backup addendum. Otherwise you will be juggling two sets of inspectors.
5. Keep disclosures and documents the same. Give the backup buyer the same Seller's Property Condition Disclosure, lead-based paint disclosure if applicable, HOA documents if you have an HOA, and any other disclosures you gave the first buyer. You are still required to disclose known material facts.
6. Know how to activate the backup. Your addendum should spell out how and when the backup becomes primary. Usually you send a written notice of primary termination and backup activation, and then the backup buyer's deadlines begin. Confirm the exact notice process with your title company or attorney.
If you are comparing offers before choosing a primary, this related post can help you sort them: how to compare multiple FSBO offers.
Collecting verbal backups. A conversation that someone wants to be a backup is not enforceable. If you want the protection, sign a full REPC plus backup addendum.
Starting two due diligence clocks at once. If both buyers think they have active inspection rights, you will have confusion, extra wear on your home, and potential legal issues. The backup should be paused until it becomes primary.
Forgetting to tell your primary buyer. Your primary REPC generally does not forbid you from accepting backups, but transparency avoids disputes. Most Utah sellers simply tell the primary buyer that they have accepted a backup. Your addendum will define this.
Letting backup buyers delay their loan work. A backup buyer who waits to start their loan until you call them will not be ready. Good backup buyers start their financing work right away. You can require in the addendum that they provide proof they have started loan application and that they will provide regular updates.
Ignoring backup offers completely. Some FSBO sellers get excited after the first yes and stop answering inquiries. That is understandable, but keeping one solid backup can save you weeks if the first deal cancels late. Even a short email that says you have accepted an offer but will accept a backup keeps the door open.
Choosing to take a backup is not about being greedy. It is about reducing the risk of starting over. If you have a clean, strong primary offer, a backup is optional. If you have any doubt about financing, sale contingencies, or buyer follow-through, a well-written backup is cheap insurance.
You can walk through the full sequence - from pricing and disclosures to offers and closing - in the free Utah FSBO guide.
This is general information, not legal advice. Utah real estate rules and forms change, so verify current requirements with the Utah Division of Real Estate or a Utah real estate attorney.