Author Topic: Has anyone here ever bought a competitor's offer on a home?  (Read 3882 times)

Le Poisson

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Has anyone here ever bought a competitor's offer on a home?
« on: February 22, 2016, 08:25:28 AM »
This past weekend, I went to look at a rental property. Was very excited about it. Ready to pull the trigger at the 11th hour, when my agent got a call from the selling brokerage that offers were being opened in 15 minutes, and that there were already 4 competing bids on the property. We decided not to submit an offer.

Now I'm running numbers on this place and kicking myself. But I recall in the early '80s that my parents bought a house and got a really good deal. When they went to arrange their mortgage, the banker offered them $10,000 to buy out their offer on the house. In other words, for $10,000 he would replace their name with his on the offer. PLaying with numbers on this place, I fond that my monthly profits would still work if I were to raise my buying price by $5,000

How would I go about a) finding out what the winning bid was on the house, and b0 contacting the winner to place a bid on their offer? Basically buying the offer rather than the house.

arebelspy

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #1 on: February 22, 2016, 02:04:25 PM »
Likely the offer isn't transferable, so you'd have to convince both buyer and seller, meaning you'd need to pay both of them off.

Contract wording is specific as to the buyer, and unless it has an assignment clause, it's not necessarily the case you can even do this.

The best thing to do, if this seller was using an agent, is approach the agent with your idea. Put an incentive in there for them, and ask that they approach the seller.

Lay it out cleanly, and easily. Make sure that the original buyer's agent still gets their cut.  Keep it simple, if the numbers still work.

It likely won't happen, but that's the most likely way to try to make it work.

Good luck, let us know how it turns out!
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arebelspy

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #2 on: February 22, 2016, 02:05:20 PM »
Also, there's ALWAYS another deal.

I'd suggest you instead put in your offer to their agent as a backup offer in case it falls through, and then move on and keep looking.
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Le Poisson

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #3 on: February 22, 2016, 02:18:35 PM »
With 3 other offers on the table, they already have backups. I withdrew, not willing to enter the frenzy. Now if I can kneecap the whole process, I'm up for that.

arebelspy

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #4 on: February 22, 2016, 02:27:23 PM »
Sure, but if your backup is best, they go with yours.
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Le Poisson

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #5 on: February 22, 2016, 02:36:16 PM »
I hear ya. I think I'll take this as a lesson, and let it be the one that got away.

arebelspy

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Has anyone here ever bought a competitor's offer on a home?
« Reply #6 on: February 22, 2016, 02:38:43 PM »
Um, alright. I mean, what is the downside?  Seems like you're giving up before starting, which was the problem in the first place (decided not to even submit offer, and now deciding not to put in backup offer).

If you want it, in such an (apparently) hot market, go for it! . Don't admit defeat without even trying!  :)

I mean, the opportunity cost is 15 minutes, and the upside sounds pretty good.
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Drifterrider

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #7 on: February 23, 2016, 04:36:55 AM »
How would I go about a) finding out what the winning bid was on the house, and b0 contacting the winner to place a bid on their offer? Basically buying the offer rather than the house.

You guys do real estate differently up there.  I used to watch a show filmed in Canada about buying real estate.  the hostess was Sandra Rinamoto (I think).  Her clients wanted a house and there were already bids in.  She suggested they offer "$1,000 above any other qualifying offer, up to XXXXX".  That established their ceiling for buying.  I think they got the house (But, it is television so who knows).

If the law allows it, it is worth a try.

arebelspy

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #8 on: February 23, 2016, 05:08:10 AM »
How would I go about a) finding out what the winning bid was on the house, and b0 contacting the winner to place a bid on their offer? Basically buying the offer rather than the house.

You guys do real estate differently up there.  I used to watch a show filmed in Canada about buying real estate.  the hostess was Sandra Rinamoto (I think).  Her clients wanted a house and there were already bids in.  She suggested they offer "$1,000 above any other qualifying offer, up to XXXXX".  That established their ceiling for buying.  I think they got the house (But, it is television so who knows).

If the law allows it, it is worth a try.

You can do that in the states.  It's called an escalator clause.  They were popular during the housing bubble.  I wouldn't recommend it.
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AM43

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #9 on: February 24, 2016, 01:07:33 PM »
Also, there's ALWAYS another deal.

I'd suggest you instead put in your offer to their agent as a backup offer in case it falls through, and then move on and keep looking.

+1

Agree 100%
There is always next deal as good if not better.
I've always avoided bidding wars.
Very rarely it ends up being a good deal.

tct

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #10 on: March 03, 2016, 11:50:25 AM »
I've done this before. I was outbid at auction. I asked the bidder if he would give me the name of the winning bidder. He provided my phone number to the winning bidder who called and I was able to pay him $10k more and he signed over the house using quit claim deed.

Blindsquirrel

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Re: Has anyone here ever bought a competitor's offer on a home?
« Reply #11 on: March 04, 2016, 06:26:34 PM »
  Yeah, lost out on a house that went to multiple offers. Asked my agent to contract winning buyers agent and tell them that I would pay $1500 for their contract. He said ok so I got the house. It was well worth it as we made 30k flipping the house.