Member FDIC NMLS #772685
Vice President - Mortgage Division
How to Compete with an All-Cash Home Purchase Offer
The housing market goes through shifts, and currently, we are in what is commonly known as a “seller’s market” – that is, a market in which there are more buyers than there are homes for sale. As a result, competition between buyers will increase, and you may even find yourself battling with the dreaded “all cash” offers.
Is it possible to compete with all-cash home purchase offer?
It may seem unlikely that anything can be more attractive, we're here to tell you that it is very possible to beat an all-cash offer! Review these top three strategies for beating all-cash offers and getting into the home of your dreams.
Be Ready to Move
All-cash offers don't necessarily mean that they can move quickly to take ownership of the home. They may need time to sell their current home before they are ready to move or have other personal reasons for delaying the closing date. Use any indication for a delay to your advantage and let the seller know that there is no delay from your offer.
Show your letter of pre-approval and have the rest of your paperwork completed so that your home loan can be processed quickly. Also, have a list of home appraisers on standby and arrange an appointment soon after you submit your offer.
All of these actions show the seller you're motivated and makes your offer more attractive.
Make Yourself Known to the Seller
Some areas have rules that limit personal interactions between prospective buyers and sellers, but it is allowed, putting a personal touch along with your offer can go a long way. Consider letting the seller know the reasons you want to purchase their home such as you can envision playing catch in the backyard with your kids.
Another reason could be because the location is near your aging parents. Don't underestimate the power of these personal stories as they may look favorably on someone who has similar ideals and dreams for the house.
Contact our office before reaching out to a seller for more information on how to go about doing this – but one cannot dismiss the influential power of sending a card or letter describing why you want to buy the house.
This suggestion can be difficult for some to consider, after all, who wants to pay more for a home? However, if an all-cash offer is less than the asking price, you can remain competitive by offering more through your home mortgage loan. You'll want to remember that how can you can offer is largely dependant on how much the house appraised for. However, if the home is appraising higher than the asking price or if you can increase your down payment, a higher offer may be able to beat an all-cash offer.
Don’t count yourself out of the game if you're competing with all-cash offers. While
Call our office today for more mortgage help and purchasing ideas that will get you into the home of your dreams.