Today, in many markets, homes move quickly, often with multiple offers. It can be an all-out war with the competitive buyers, and some of them will go to great lengths to win. Here are three tips for going the extra mile to make sure you come out as the winning bidder.
1. Make your offer a “sharp” offer : If the market is competitive and you really want the home, you need to let the seller know you will do whatever it takes to win it. In some cases, buyers will make what we call a “sharp” offer. In this situation, a potential buyer will match the highest and best offer, and raise that offer price by five percent – or sometimes even 10 percent.
2. Offer to buy out the winning buyer : In some cases, frustrated buyers who lost a bidding war will track down the winning buyer and negotiate with them. In this scenario, the losing buyer offers to pay the winning buyer their earnest money deposit plus any expenses, in return for letting them take over the purchase.
3. Write a letter to the new homeowners once they close : If you can’t try to snag the home from the winning bidder, there is one final option. Knock on the door or write a letter to the new owner before they close. Explain that you missed out on the home and that you would like to directly buy it from them. In this case, you’d have to make an incredible offer – one that would cover their sales and moving costs, and put money in their pocket. If you give them the right price, you might be able to motivate them.
When all else fails, it’s time to move on. Don’t fret – there will be a new house! When the next house comes along, be the first to see it, use what you learned this time to make the first offer and make it a great one!
