Top 7 Ways to Best an All-Cash Offer
Cash is King, or so they say. Here are seven ways to help your financed offer beat out an all-cash offer:
1. Bring a large down payment to the table with proof of those funds. If you can swing putting 20, 30 percent or more down will help show to the seller that you are an “able” buyer. Include a copy of the bank or savings account statement showing that you really do have those funds readily available to you. NOTE: be sure to blank out any account numbers on those statements.
2. Have your purchase mortgage loan fully approved…not just pre-qualified: Provide a copy of the fully approved letter from your lender. Be sure that it indicates that the lender has reviewed/verified each buyers income, employment, savings, debts, etc.
3. Indicate your desire to close quickly: In today’s market normal closing time is within 45 days of the accepted offer. If your lender agrees, indicate that you want to close within, say, 21 days.
4. Search out and work with a lender that will underwrite a loan before the offer: this may take some searching, but some lenders are willing to start underwriting a loan, with a to-be-determined address. This will help save time and help meet a short closing timeline.
5. Use a buyer-agent familiar with the neighborhood: Using an agent with history in selling nearby homes will help convince the seller and their agent that the deal will close.
6. Consider waiving contingencies if it’s a newer home: Contingencies are written into a contract to give the buyer a “back door” out of the purchase if they have a change of heart, but also make the seller leery about accepting the offer. Consider waiving a physical inspection, but only after you’ve had a contractor friend check out the home before you make that offer.
7. Pull on the Seller’s heartstrings: Consider writing a one-page heartfelt letter to the seller on why you are the perfect buyers for their home. Some buyers even produce a video that can be emailed to the sellers along with their offer. The buyers can explain why this is their “dream” home and they can’t wait to start making memories there.