Competing with all cash offers can be frustrating, especially when you’re in a market where inventory is low and home prices are high. During these times, it’s normal to hear the adage “cash is king.” But there are still ways to stand out from the crowd and get your offer accepted by a seller.
1. Make a high-dollar earnest money deposit
If you’re competing with an all-cash buyer, write in a big dollar amount of earnest money into your offer to show the seller that you are serious about purchasing their home. This is a common tactic for sellers in this situation, and it can help your offer stand out from the competition.
2. Do your research before making an offer
As you’re preparing to write your all-cash offer, do some research into the neighborhood, asking price, and other relevant details. This can help you understand what the sellers are looking for in a home and whether or not they’d be able to meet your demands, such as moving into the home sooner than expected or having some repairs done before closing.
3. Consider waiving a contingency
Most real estate contracts contain contingencies, which are a list of conditions that must be met in order for the sale to clear. These conditions can hold up a transaction, often for weeks or months, depending on the situation. For more info https://www.kcpropertyconnection.com/mo/springfield/
In some cases, the only way to make a deal close is to remove a contingency, such as financing or an appraisal. This can help you compete with all-cash buyers who don’t need a mortgage contingency in their offers, and it also may allow you to close more quickly, since you won’t have to go through the process of getting your loan approved.
4. Find out what motivates the seller
If you know what drives a seller, you can use this information to your advantage in your negotiations with them. By knowing what their priorities are, you can make an offer that meets those needs while providing a smooth transaction and a fast closing.
5. Be flexible
If your offer is competing with an all-cash bid, be willing to accommodate the seller’s preferences and timeline. For example, do you want to have your home inspection completed as soon as possible? Do you need to move out of the old home before closing on the new one?
6. Be patient
The process of buying a home can be stressful, and you might not be in the best frame of mind to negotiate with a seller. So if you’re struggling to make an offer on a property, give it your all and try your best to be patient.
7. Don’t waste time negotiating on price
The temptation to spend a lot of time arguing over the selling price of your home is strong when you’re up against an all-cash buyer. But it’s better to put your best foot forward and submit an offer at the top of your budget, and then see what happens.