• How You Can Get Your Offer Noticed When You’re Competing Alongside An All-Cash Offer

    Are All-Cash Competitors the Kiss of Death to Your Dream Home?

    It can be very discouraging when you find your dream home, only to find that another buyer wants it too; except they’re offering up all-cash. You feel defeated, while you stand there with your mortgage pre-approval letter. Often time, buyers will just decide to walk away from the home altogether, assuming that their offer won’t even be considered anymore. 

    And, why would it? With a cash offer, a seller doesn’t have to worry about the bank, or the buyer’s loan falling through. The whole selling process immediately becomes a breeze. However, the prospect of owning the home is not a total lost-cause. So, how exactly do you deal with competing with someone that already has a major leg-up? The trick is to make your offer look more appealing than an all-cash offer. Sound hard? Rest assured, it can be done!

    The first thing you should do (if you haven’t already) is get a pre-approval letter from a bank lender, showing that you are qualified and approved for a loan large enough to purchase the seller’s house. This will lower the seller’s perceived risk regarding you as a buyer. You want to show the seller that financially, you are a sure bet. 

    Tip #1: Offer More Money Than Your New Competitor

    The cash-buyer is one that already know he has the advantage. Due to this fact, they usually expect the seller to take less money; and often, they do. Therefore, even though you have a loan, the seller ultimately is still going to get more money for their house. This certainly will help your offer stand out.

    Tip #2: Hurry Up the Process

    Getting approved for a loan can take a few weeks. Then, the house has to be appraised which can add even more time. When you apply for the loan, ask them how you can hurry the process of getting approved. Sometimes, if the situation is pressing, they will put your application in to review first (or at least further up on the line than it would have been). This is important, because when you make an offer on the house, it is much better if you have your pre-approval letter right when you submit the offer. Otherwise, the seller is looking at a cash offer, and then another offer that they won’t know if it is legitimate or not for a few weeks. See what we mean? 

    Tip #3: Send a personal letter

    This does not always works, but sometimes, it might be your only bet. Many sellers are ruled by their emotions, even though they are told time and time again to treat selling their house like the business deal that it is. You never know; you could be working with a seller who doesn’t necessarily make analytical decisions or emotional ones. Nothing ever hurt to try!

    Tip #3: Be Flexible With The Closing date

    The closing date is actually one of the most important terms when it comes to an offer on their house. They could have the best offer in the world from a buyer, but they want them to move out on Monday morning…”or else!” So, even if your offer is lower than the all-cash buyers, you might consider allowing them a few weeks, or a few months to move out; however long they need.

    For further reading, check out this great article on Top 10 Ways to Strengthen Your Purchase Offer and Beat the Cash Offers, as well as another related read, on How to Beat an All-Cash Offer on a House.

    Categories: Uncategorized

    2 thoughts on “How You Can Get Your Offer Noticed When You’re Competing Alongside An All-Cash Offer

    • Gretchen says:

      I like where the article was going with this, but in my opinion, if I get an all-cash offer, I’m going for it no matter what. I do get that every seller is different, but still…its all cash, can you blame someone?

    • Carol Wilson says:

      Hey Gretchen! Yes, many people are like that. This is why all-cash offers are tough, if not near impossible to compete with. The best ways to are the ones laid out in this article. Unfortunately, they’re your only hope if you’re competing alongside a cash buyer 🙁

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