How to Compete or Beat Cash Offers
It can be difficult to compete with all cash offers when you’re trying to buy a home with financing. We are seeing a lot of buyers right now that are getting beat out by all-cash buyers or investors. So, how are they to compete if they need to buy a house?
Money in the jeans pocket – 50 dollars banknotes
Here are a few ways to compete with all cash offers when purchasing a home in Panama City Beach.
- Make sure that your financing is ready to go.
When submitting an offer to a seller you want to make sure that your offer and your financing is secure and complete. You might even give access to your financial information for the listing agent and/or the seller so that they feel completely comfortable in your finance offer. Make sure you have a pre-approval letter stating that you are well approved to purchase in their price range and that there shouldn’t be any issues that would be an obstacle in obtaining financing.
- Prepared to spend a little more money.
You might have to bid a little bit higher in order to get the home that you want. If you are approved for more than the asking price and there is currently a cash offer on the table, consider offering $5000 or more above the highest offer, as long as the home can appraise for this amount. (Check with your real estate agent on the current market value for the property in order to know for sure if the home could appraise for higher.)
- Be flexible and reasonable with the seller.
Make every effort to speed up the entire process by speaking with your loan officer or the lender about getting the deal closed as quickly as possible or on the seller’s terms. Make sure that you keep any appointments and complete items in the purchase and sale contract in a timely manner.
- Get personal with the seller.
Consider writing a personal letter to the seller informing them of how much you love the home or mention any improvements that they have done on the property. Make this letter short, simple and to the point throwing in a couple of positives about the neighborhood, the school district, or the property itself. You never know what might appeal to particular sellers.
- Consider fewer contingencies.
You might be running a little bit of a risk, but if you love the home anyway regardless of any issues it may have, you might consider waiving the inspection contingency. This is not to say that you should not have an inspection performed on the property but that the sale of the property is not contingent on the inspection report. There are other contingencies as well but you might consider waiving such as the sale of an additional property, neighborhood feasibility contingency or other details that might not be as important as getting the right home.
Competing with all cash offers may be a little tricky and may require some finagling, but it’s not impossible and if you work closely with your real estate agent we can find ways to help appeal to particular sellers so that you can find the right home for you.