Extreme Home Buying Strategies to Get the House You Love
In many real estate markets today, homes sell quickly, often with multiple offers. Some homes, called “pocket listings,” are sold before even hitting the market. It can be an all-out war for competitive buyers, and some will go to great lengths to win. Here are three extreme home buying strategies to help you get the property you love.
Make a “sharp” offer
If the market is competitive and you really want the home, let the seller know you’ll do whatever it takes to win. In some cases, you must make what is called a “sharp” offer. In this situation, a potential buyer will match the highest and best offer and raise it by five percent—sometimes even 10 percent.
Offer to buy out the winning buyer
I’ve seen remorseful buyers, frustrated after losing a bidding war, track down the winning buyer and negotiate with them. In this scenario, the losing buyer offers to pay the winner’s earnest money deposit (sometimes up to three percent of the purchase price) plus expenses in return for letting them take over the purchase.
Write a letter to the new homeowners
If you can’t snag the home from the wining bidder, you have one last option. Knock on the door or write a letter to the new owner. Explain that you missed out on the home and would like to purchase it directly from them. In this case, you’d have to make them an incredible offer—one that would cover their sales and moving costs and put money in their pocket. If you hit the right number, you just might motivate them.
When all else fails, move on. There will be always be another house. Chalk up the loss to experience. When the next great house comes along, be the first to see it, get the first offer in the door and make your offer irresistible.