Smart Ways to Beat an All-Cash Offer
Money talks when it comes to making an offer on a home, and in real estate, all-cash offers are big talkers.
But what if you don't have an all-cash offer? Does that mean your out of the running for buying your dream home? Not at all!
Though all-cash offers are enticing to home sellers, there are ways to make your offer look even more attractive.
Here are smart tips to compete with all-cash buyers and get the home of your dreams!
1. Get pre-approved for your home loan
All the tips in this article won't work unless you start with the most basic --you must get pre-approved for a home loan. Pre-approval is a guarantee to the seller that you have the funding to purchase the home.
Without it, your offer is weak, and the seller is sure to prefer the all-cash buyer. Getting preapproved for a home loan is easy and takes just a few minutes.
Click over to our home page to get started!
2. Best offer first
Assume that you won't have the opportunity to negotiate on price, because, with all-cash offers, you may not. If you're afraid of overpaying for the home, look at the current appreciation rate. Do you see an overall trend of home prices rising in the neighborhood?
If prices are increasing, you may want to consider paying a little extra today. If prices continue to rise and you keep getting outbid, you may end up paying more later, or possible being outpriced permanently.
3. Ask what the seller is looking for
Before coming in with an offer, ask the seller's agent what they are looking for in an offer. Does the seller need extra time to find a new home? Do they prefer a quick close? Do they want to control who processes escrow and title?
Every seller is different and has different motivating factors. Find out what they are and use them to your advantage when making an offer.
4. Be flexible
Flexibility counts when up against all-cash buyers. Once you know the seller's terms, make your offer even more attractive by showing them that you're willing to work with them.
Things like being accommodating with the closing date, offering to rent the house back to the sellers while they look for their new home, or asking for minimal repairs go a long way when competing with all-cash offers.
5. Consider an “as is” offer
An "as is" offer means that you're willing to buy the home without asking the seller to make repairs or for the money to fix anything that comes up during the home inspection. This move is undoubtedly risky, but it's an aggressive move that will makes your noncash offer way more alluring than an all-cash offer.
Whether you're competing with all-cash offers or not, preapproval is the best way beat out other buyers.