5 Clever Tips to Succeed in the Competitive Housing Market from Coto to the Coast

The old home-buying advice of getting pre-approved, moving fast, and making a competitive offer is still good, but it's frequently not enough in the fierce market from Coto to the Coast. With more buyers than homes and frequent bidding wars, you need a unique edge. These five unexpected strategies can help you beat the competition and secure your dream home.

1. Write a “Love Letter” to the Seller—But Make It Strategic, Not Personal

Buyer letters can be effective, but they often fall flat by focusing solely on the buyer’s emotions or including identifiable information that could cause discrimination issues. Instead, tailor your letter to align with what the seller values most about their property.

How to do it right:

• Find out the seller’s motivation if possible. Are they downsizing? Moving for a job? Selling an investment property?
• Focus on why you’re the perfect buyer for what they need, not just why you love the house.
• Compliment aspects of the home that show care and pride, such as custom woodwork or well-maintained landscaping.

Example: "We noticed the amazing garden beds in your backyard. The care you’ve put into them is inspiring! If we’re lucky enough to call this home ours, we’d love to keep them thriving."

Pro Tip: Keep it brief, genuine, and seller-focused. Avoid mentioning personal details that could raise Fair Housing concerns.

2. Offer a Seller Leaseback—Even if You Don’t Need One

Though many buyers think faster is better, sellers often value flexibility more. They may need more time to find a new home, close on another property, or simply move out.

How to use this to your advantage:

• Offer a leaseback option where the seller can stay in the home after closing for an agreed period, typically 30–60 days.
• Make it attractive by offering low-cost or even free rent for a short period, if you can afford it.
• Structure it safely with a formal agreement and insurance coverage.

Example: "We can offer you a 45-day leaseback, giving you extra time to transition smoothly to your next home without the stress of moving immediately."

Pro Tip: For sellers juggling a difficult move, this can be more appealing than a higher offer with no flexibility.

3. Get Hyper-Local Intel from Neighbors

Many homes are sold without ever hitting the market through private sales, word of mouth, or pocket listings. Get ahead by tapping into local networks.

How to do it:

• Walk the neighborhood and have casual conversations with homeowners and local businesses to find out who is looking to sell.
• Write a handwritten letter and mail it to homes you love, expressing interest in buying directly. Remember, don’t leave notes in mailboxes by hand as it’s illegal.
• Join local Facebook groups or platforms like Nextdoor, where people often mention plans to sell their homes.

Example Note: "Hi! My name is [Your Name], and I’m looking to buy a home in this neighborhood. Your home is lovely, and it’s exactly what I’m looking for. If you (or anyone you know around here) is considering selling soon, I’d love to chat. No pressure though. Feel free to text me at [Your Contact Info]."

Pro Tip: Many sellers prefer private sales to avoid showings, fees, and bidding wars.

4. Use an Escalation Clause Wisely

In a competitive market, it’s tough to know how much to offer without overpaying. An escalation clause helps you stay in the game without automatically jumping to your highest price.

How it works:

• You submit an offer stating: “I will pay $X,000 over the highest competing offer, up to a maximum price of $Y.”
• This approach keeps you in the running without automatically going to your highest price.

Example: If you offer $400,000 with an escalation of $5,000 over the highest offer (up to $420,000), and another buyer bids $405,000, your offer would automatically escalate to $410,000—just enough to win.

Pro Tip: Some sellers don’t like escalation clauses because they prefer straightforward offers. If that’s the case, try using an odd, non-round number (e.g., $402,350 instead of $400,000). That tiny difference can give you an edge.

5. Get Creative with Your Down Payment & Earnest Money

Sellers look for buyers who seem financially strong and can close with minimal risk, to avoid the possibility of the deal falling through. Even if you’re financing, you can signal financial stability in several ways:

Increase your Earnest Money Deposit (EMD):

• Standard earnest money is 1–3% of the purchase price. Bumping it to 5% or more shows commitment.

Use Non-Traditional Funding to Strengthen Your Offer:

• Consider borrowing from a 401(k) if allowed, some plans permit penalty-free withdrawals for home purchases.
• Ask family for a gift fund to increase your down payment.
• Explore bridge loans to access equity from your existing home if necessary.

Example: "We’re putting down a $25,000 earnest deposit upfront to show our commitment, and we’re fully pre-approved with a guaranteed closing timeline."

Pro Tip: Some lenders offer fully underwritten pre-approvals, which are stronger than regular pre-approvals and make your offer almost as strong as cash.

Final Thoughts

Succeeding in a competitive market requires more than just outbidding other buyers. You need to make your offer the most appealing overall.

• Be strategic, not just aggressive.
• Offer what the seller truly values.
• Leverage creative approaches that other buyers aren’t considering.

Which of these strategies surprised you the most? Have you tried any unconventional approaches to secure a home in Coto to the Coast?