How to Get the House You Want When You’re Competing with Other Buyers

Don’t be surprised if other buyers are interested in the same house you are. Here are some ways to come out on top.

Offer More Money

Raising your bid is the most obvious way to get your dream home. That approach can work, but you’ll have to be careful not to get carried away and offer more than the house is worth.

An escalation clause will raise your bid automatically to beat another buyer’s offer, but only up to a certain point. Setting a limit in advance can protect you from yourself.

Make a Larger Down Payment

Sellers want to work with buyers who are financially secure. A substantial down payment can give the seller a positive impression.

Put down More Earnest Money

Earnest money is a deposit that shows a seller you’re acting in good faith. Earnest money will be applied to your down payment or closing costs. If you put down a higher percentage of the purchase price, the owner might decide to sell the house to you instead of someone else.

Be Flexible with the Closing Date

For some sellers, flexibility is their top priority. If you don’t need to move right away, you can offer to delay the closing or let the seller continue to live in the house temporarily after closing.

Limit the Number of Contingencies in Your Offer

Contingencies are conditions that have to be met before you close on a house. It’s normal to include contingencies related to a home inspection and mortgage approval. You can include other contingencies, such as requests for repairs.

A long list of contingencies can backfire, especially when you’re competing with other buyers. To make your offer appealing to a seller:

• Only include contingencies that are essential

• Adjust the timeframes to minimize the hassle for the seller while still protecting yourself

Get Help from Your Agent

Your real estate agent understands the local market and which kinds of homes are in high demand. Your agent can:

• Find out what’s most important to the seller

• Suggest ways to make your bid more appealing (without necessarily offering more money)

• Help you protect your own interests

Learn More about How to Buy a House

If you’re shopping for your first home, you probably have lots of questions. The First-Time Homebuyer Masterclass breaks down the homebuying process, explains how things work, and points out where buyers tend to make mistakes.

When you complete the course, you’ll be ready to find a house that’s right for your family and your budget. Enroll in the First-Time Homebuyer Masterclass today.

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