Using ‘Kick Out’ and ‘Accepting Backup Offers’ to Create Value for Your Clients

Consider this scenario: You hook an interested buyer for your seller’s property. That buyer loves the property and wants to go under contract, but they need time to sell their own home first.

Here’s where introducing a kick-out clause with the first interested buyer can be beneficial for you and your seller, in addition to advertising that you’re still accepting backup offers.

A kick-out clause basically says, “Yes, we’ll accept your offer and go under contract. We’ll give you time to sell your own home, but we reserve the right to continue accepting back-up offers. If we get a backup offer we like, we’ll let you know. Then, you’ll need to quickly decide whether you want to make the purchase or terminate the contract so we can move forward with the sale of our home.”

This is a fair deal for both parties. It’s in your seller’s best interest to continue accepting backup offers because it’ll help them keep things moving. They can “kick out” that first offer if they get another offer they want to move forward with.

Helping Your Seller Find Backup Offers

To give your seller the best possible chance to find a backup offer in this scenario, your next step is to update their listing in REcolorado Matrix by changing the status to Under Contract. You can use our how-to document, Change a Listing Status, for step-by-step instructions on this.

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On the Change to Under Contract form, a field called ‘Approval Conditions’ is prominently displayed. You’ll want to select the option of ‘Kick Out – Contingent on home sale’ from the list. Additionally, you’ll want to select ‘Yes’ for the ‘Accepting Backup Offers’ field.

The REcolorado Rules and Regulations calls for changing the listing to Under Contract in a kick-out clause scenario because the Department of Regulatory Agencies (DORA) considers it an accurate and truthful reflection of information for other interested buyers. Because the listing is Under Contract:

  • using the ‘Kick Out’ and ‘Accepting Backup Offers’ fields indicates to buyer’s agents that the home is still on the market.
  • it’s still included on, as well as in IDX feeds and on syndication sites.

Finding More Inventory for Your Buyers

Knowing how to search for listings that are accepting backup offers means you can uncover inventory for your homebuyers. REcolorado Matrix makes it easy to search and see properties that are accepting backup offers and homes that might have unique approval conditions, like kick-out clauses.

REcolorado Matrix MLS Add Fields Single Line Display
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Start by adding fields to your search criteria, as well as to your single-line display. You can use our how-to documents Add Additional Search Criteria and Create a Custom Display From Results for step-by-step instructions. You’ll want to add the following fields:

  • Accepting Backup Offers – so you can view properties that are accepting backup offers
  • Approval Conditions – so you can view homes that may include a kick-out clause
  • Under Contract Date – so you can estimate how soon the sale might be closing

Need help entering a listing, searching for listings, or creating reports? Our Customer Care team is always happy to help! They’re available Monday through Friday from 7:30 a.m. to 6:30 p.m., and on Saturday from 8 a.m. to 5 p.m.

Call 303.850.9576 and select Option 1, or send an email to

Originally published August 2, 2018 — Updated September 11, 2019