First you get all of your finances in order and start the process of looking for the home you and your family need. After a while of searching for the perfect home- You find it, this is the one you can see your furniture in, see your daughter come down the stairs for her first date, see your son hanging in the living room with his buddies and all of the other dreams you have for your home. You are so excited you found it!
However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.
Cash buyers are seen as desirable because they’re almost always a guaranteed quick close.
They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.
Follow the steps below to beef up your offer and get your foot in the door. So to speak;
Get Pre-Qualified and Pre-Approved
Have your lender do the DU approval and provide that along with the offer and any other pre-qualification form needed. This shows the seller that you are not only pre-qualified, but also you have a pre-approval for the loan amount. Showing your strength beyond most offers that need financing.
Less Expensive Homes
If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.
20 Percent Down Payment
Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.
Take-It-Or-Leave-It Home Inspection- As is
This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.
Waive the seller concessions, such as closing costs and the home warranty. These extra costs add up in the mind of the seller and will show that you really want the property.
Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash. But a smart buyer can do some of these simple things to get an edge on the competition.
Good luck and if you have any questions about this- please let me know!