In a red-hot real estate market like the one we’re currently in, cash offers are becoming more and more common. They’re alluring to sellers, as they typically come with fewer strings attached and less risk than a bid that requires financing from a bank.
But how do you beat a cash offer?
With a little imagination and empathy, you can put your best foot forward against a cash buyer. The key is to get into the seller’s shoes and figure out what they’re really looking for.
If you can solve their problems, they’ll likely be more willing to accept your offer.
For instance, if they’re worried about losing their deposit because they didn’t get the home inspected or because the appraisal came back too low, you might be able to win them over with a flexible closing date and other terms that meet their needs. More info https://www.selltogreenpoint.com/we-buy-houses-thomasville/
Another way to make your offer more appealing to a cash buyer is to include an escalation clause in the contract. Many sellers will choose an offer that’s higher if they’re convinced it won’t take long to close, so you can use this to your advantage.
By getting a preapproval letter from a lender before making an offer, you can show the seller that your credit and finances are in good shape. This also gives them confidence in your ability to purchase the home and saves you the time of a lengthy approval process.
It’s important to note, however, that this tactic may create last-minute buying hurdles. For this reason, it’s a wise idea to only go into negotiations with a preapproval from a lender that has the highest standards in the industry and can prove their credibility before you even submit your offer.
Then, once you’ve got that all-important preapproval in hand, be sure to include a strong offer. The key is to get the price of the house as high as possible while ensuring that the seller gets the most out of their sale.
Once you’ve gotten your offer together, talk to your realtor about the specific terms that would benefit your seller the most. They’ll be able to make those terms a part of your offer, which will make it easier for you to win over the seller and ultimately close on the deal.
For example, if they’re hoping for more money for repairs, you might offer to help pay for the work or offer to hire someone to do it for them.
You could also offer to stay in the home for a few days or months after closing so that you can supervise the repair work, which might be difficult for a cash buyer to do.
Finally, consider increasing your escrow deposit. If it’s common to place a 5% deposit with an offer contract, make your deposit larger or add other terms that you can use to your advantage, such as carpet or painting allowances.
Keeping these tips in mind can help you to beat a cash offer and get the house of your dreams!