When you are in 2nd place
It can happen that the property you love and want to buy is suddenly under contract. Someone else got there first. But, all is not necessarily lost. This has happened to clients of mine on several occasions and we have found ways to successfully buy the Alabama property anyway.
Buy the contract
One way to handle this is to “buy the contract”. With this method, you pay the current contract holder an amount of money to assign their interest in the contract to you. Remember, you assume all their obligations under the contract, so be sure you get a look at it first. If the contract is not assignable, it may take an inducement to the seller as well to agree to modify the original contract.
Another way is to place a back-up contract on the property. With a back-up contract, the seller says in effect, “if my purchaser fails to close on their contract with me, then I agree to sell to you upon terms and conditions stated in the back-up contract”.
As in many things in life, sometimes the key to winning is not giving up.