Tell recruiter I received an offer from another company (somewhat unique situation)
Hello, I'm in a bit of a unique situation. Last month I interviewed for a remote engineer position at a company that's basically my dream job. Ultimately I didn't get the job because they decided to go with local candidates, but the recruiter said they really liked me and that I was the next choice over the ones they hired. The recruiter also said that the hiring manager was hoping to open up another position in a month or so and that he'd let me know to apply.
Well lo and behold, a position just opened up and the recruiter told me to apply and that I'd be able to skip the interview process. He reiterated that the hiring manager really liked me but that they'd have to post the rec and interview candidates again.
Here's the thing. Today, I just received an offer from another company for a similar engineering position, but onsite full time. I really want this remote job that I feel like I've been given a second chance at, but I'd be dumb to pass up this onsite position that's a close contender.
I may just accept this first offer and (politely) back out if I get my dream offer. But should I tell the recruiter for my dream job that I received another offer in the hopes that they might move a little more quickly to make a decision, even though they just started interviewing?