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Bidding Wars: Fighting to Find a Family Home

Ferocious bidding wars have become the norm in a real estate market that is hotter than ever.
7:25 | 05/14/14

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Transcript for Bidding Wars: Fighting to Find a Family Home
You would think if you found your dream home and then scored a mortgage you would pretty much be a done deal, right. Not in to day's housing market. It is a jungle out there. Tonight we are with one family going to extremes just to put a roof over their head. Our guide is a ringer, one of the stars of "Shark tank" real estate veteran who says welcome to the new Normal. And we have the story for our series "Realty check." Reporter: Two cities, two houses, two price points, and two couples caught up in a national feeding frenzy. It is absolutely crazy. It's a war. Reporter: The hottest real estate market in years. You have to be very aggressive right away. Nobody expected home prices to go up this fast so quickly. It is so competitive. But we're back. Every buyer is going bonkers. Reporter: We headed out to spend two weeks on the front lines of the bidding wars with the shark herself. Barbara corchoran. Not enough inventory. We don't have enough houses to go around. Reporter: Which is why this listing in highlands ranch, Colorado, is the talk of the suburbs. Three bedroom, three bath with vaulted ceilings and a quaint backyard. Listing price, $329,000. A special house. The house that my mom lived in. And I want somebody who is going to love it as much as my mom loves it and as much as I love it. New parents, kooelt andeith and Brianna have been house hunting. Multiple houses we have attempted to put offers in on. By the time we call. They're gone. We're getting ready to go look at five homes. Some aren't quite right. I don't want to have to come up stairs to get in. Maybe a little small. Then they get to Debbie's house. It is quiet here, huh? This is nice. It is nice. Love the entry way. Beautiful house. A nice big yard. There are a lot of trees. I like this one a lot. Outbid on two other houses already they're now prepared to fight. Yeah, I think we are going to definitely put an offer in on the house. Winning this isn't going to be easy. Meanwhile, across the country, in this upscale New York suburb, real estate is just as hot. This ranch-style home with five bed rooms, 3 1/2 baths, gorgeous amenities and a creek running through the yard has an asking price of $1.35 million. Owners John and Jackie Walter have lived here for seven years. But this sellers' market could not have come at a better time. Do you have an ideal buyer in mind? Cash. Cash is 90% of the bids. More important than what price you bid. The day after hitting the market. There is an open house for brokers only. Beautiful. I looked at pictures. I need to see this house. O., perfect. But this buyer shows up uninvited. I have a huge house. I want to downsize. Dr. Sophia den, a single mother of two decide she wants this house on the spot. I see myself living here. I'll give more than asking price. Thank you. The house has been on the market for about eight hours. Sophia saw the house first, but -- I love this house. It's beautiful. Meet her competition. Jody and Jonathan want to raise their twins here. We just want to be smart and intelligent. There is no question we really like this house. They also decide to putten a B -- put in a bid. Sophia's bid throws them out of the running. A third bidder swoops in with an even hyperoffigher offer. It looks like it is over. They submitted offers. They have a clear winner. Sophia isn't taking no for an answer. Over the next three days she ups her bid twice. That's the winning strategy. We meet up with her as she signs the contract. They kept making people bid until the last minute. So, until she signs, she can, technically still ask for more money. I hope that I have satisfied the greed for now. John and Jackie Walters say they were only being fair for all parties involved. In the end, Sophia paid more than $100,000 over the original asking price. When you have a white hot market that you have now. You have to really put your belly up to the bar, go and reach farther than you ever thought you would have to. This house. Reporter: Back in Denver, Brianna and Keith are excited to put in a bid for their Denver dream home in highland's ranch. We are going to offer $330,000. And our decision, we hope we get the house. Reporter: To edge out the competition they add a personal touch to their bid. So we sent a letter over talking why we absolutely love the house. We really think it is just perfect for us. Rider included. Fingers crossed. If not, I don't know what I will do. For a letter to be effective it should be short and sweet and hand written. Reporter: Coast to coast these happy buyers all seal the deal with emotional pleas. We would be so honored to raise our future family here. We hope you will choose us to preserve and cherish your home. We are a newly married couple searching for a him to start a family in. We feel we found that in your house. Time to find out if the letter gave them the leg up? They think they got a pretty good shot. We should hear pretty soon now. Three offers. We narrowed it down to the three. So we are all anxiously waiting for a phone call. A family with a baby that they sent adorable pictures and -- and really -- nice letter. ? ? Do you think it is her? Hi. It is Sabrina. How are you? Hey. I wanted to get back to you with regard to your buyers offer on English spare row. Unfortunately we have not selected your offer the I know that they're going to be sad. You didn't get the news you were hoping for? We didn't. How does that feel? A pretty big letdown. We were pretty convince weed had a good shot this time with this house. Reporter: They have decided they will take some time off before continuing their search. Just a few days later in Scarsdale, New York, Jody is out on the house hunt again. And after being outbid on yet another house, Jody find this charming four bedroom colonial with an asking price of $1.279 million. I called Joanne, our realtor. I want to see this house right now. We offer, ask, and we got it. Right there. We were the happiest ever. Reporter: Finally after seeing approximately 40 houses, a victory for Jody and Jonathan. Tell me how today is? Super excited. I think this is our dream house. We know this is going to be a home that we will fill with a lot of love and happiness and good memories. For "Nightline," in Scarsdale, New York.

This transcript has been automatically generated and may not be 100% accurate.

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