When a fixer-upper became available, Raposa's clients cut short a trip to Hawaii and flew back on the red-eye so they could attend the open house. They loved the house and made an offer that same day, but after some counteroffers it went to someone else.
Raposa knew the listing agent, and when the first deal collapsed, he made an appeal on behalf of his clients. Getting involved on a personal level can be more effective in certain situations than having a signed document.
"It's all about relationships," said Drew Mandile, an agent with Sotheby's International Realty, Beverly Hills. Mandile and partner Brooke Knapp sell luxury properties in Beverly Hills and Bel-Air. "We prefer to keep things verbal. From my perspective, I can't think of a single advantage that having a written backup offer provides."
Mandile knows who is interested in his clients' properties, and the minute a deal goes south, he is quick to pick up the phone and talk to other buyers' agents. By keeping everything verbal, Mandile said he has more flexibility to negotiate terms for his clients.
For the last year, Michelle Yahn and her husband, Steve Krafft, have been looking for a larger home in the Silver Lake area. They made offers on four properties but consistently found themselves in the first backup position.
In each case, Yahn broke the cardinal rule for people making backup offers: She got emotionally involved. She fell in love with each house, visualized her two sons growing up in them and fantasized about how she'd redecorate.
"It was terrible to be that close so many times," Yahn said. For Yahn, the waiting game was excruciating. It got to the point where she jumped every time the phone rang.
"I felt like I had a boyfriend who kept breaking up with me and picking someone else!"
Despite her disappointment, Yahn still wouldn't hesitate to write a backup offer if another great house came along.
"It's a tough market out there," she said. "I'll do whatever it takes to get the house of my dreams, but next time I won't get too excited until I know it's mine."
