You’ve done it! You’ve found the house of your dreams. But what happens when someone else makes an offer on it and you lose the house? Don’t let that happen. Here are the ways you can make yourself competitive as a buyer:
Beware of Pocket Listings.
Pocket listings are homes that sell before they hit the market. If there’s a home you know of that will go on sale for soon, be proactive and contact the sellers or the seller’s listing agent before they get inundated with offers. A great way to be ahead of the competition is to ask your neighbors or friends if they have heard of any homes that are about to go up for sale.
Make a Relative Bid.
A relative bid is essentially an offer to match and outbid any other offers that come in for that particular house. If you make a relative bid on a home, the sellers will know that you’re serious; this can also often deter other home buyers as they know that their efforts will likely be futile.
Offer to Pay Cash.
If you can pay cash for a home, you will rise to the top of the seller’s list. This isn’t an easily affordable option for most buyers, but if you can afford to do so, the seller will know you’re serious and will appreciate the fact that they don’t have to go through any pesky loan transfers.
Buy Out the Bidding War Buyer.
If you have gone into a bidding war with another buyer, you can always offer to buy them out at the end of it. This would result in you paying the buyer an earnest money deposit in order to officially be the buyer of the home. This can be an expensive option, and can represent anywhere from three to five percent of the home’s purchase price.
