Definition
A second purchase offer submitted for a property that already has an accepted offer. If the primary deal falls through, your backup offer becomes active.
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Backup offers are common in competitive markets where buyers want to secure a property if the primary offer doesn't close. Backup offers should include contingencies for inspections and appraisals similar to a primary offer. Being a backup offer holder puts the buyer in a waiting position but may result in a deal if the primary transaction fails.
Pro Tip
Submit a backup offer if you really want a property. It keeps you in the game if the primary buyer walks away.
Example
After her primary offer was rejected in the bidding war, the buyer submitted a backup offer with the same price and terms, which became active when the primary buyer's financing fell through.