- Show your financial strength Make your competitive offer as strong as cash by providing the seller the confidence they need to accept your offer. Provide as much financial information with your offer as possible. Include bank statements, pay stubs, and credit reports. Overload the seller to show them that you’re as solid as the cash buyer.
- Ask your lender to get a head start on the mortgage. See if your mortgage professional can move the process along sooner. I can help with lenders that can essentially fully underwrite your loan, allowing you the opportunity to write an offer without a loan contingency.
- Shorten the loan and appraisal contingencies. The shorter your contingency periods the more confident the seller will feel that you will close on the sale.
- Pre-order an appraisal. This may not be as easy with a bigger bank. But smaller banks, direct lenders or mortgage brokers can line up the appraisal in advance. At the time your offer is written, tell the seller the appraisal has already been ordered. If you can get the appraiser out within 24-48 hours of coming to terms with the seller, it’s half the battle.
- Write an offer with a strong purchase price. Cash buyers nearly always expect a discount from the seller simply because they’re offering cash and there’s less risk of falling out of escrow for the seller. To increase your chances, it may mean paying a little more than you think the home is worth. If a seller is faced with a few thousand dollars’ difference, the seller probably wouldn’t risk it. But what if your offer is five percent higher than
the cash buyer’s? The seller might seriously consider. If you plan to live in the house for many years and it’s the home of your dreams, paying a little more to get the deal might only translate into $20 per month over the course of a long-term mortgage.
How to Compete Against All Cash Offers
Posted By : seanneub on Jul 19, 2018
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