All cash offers are often a worst-case scenario for many people who are hoping to purchase real estate. While many people feel that if an all-cash offer is placed, they stand no shot of purchasing the home or having their offer accepted, this isn’t always the case.
It is no secret that many homeowners and lenders do prefer all-cash offers, however, if you find a home that you love and want to try your best to get your offer accepted, there are a few ways you can try to compete.
Related: What is a Pocket Listing?
Offer to Buy the Property “As Is"
One reason many sellers love to work with all-cash offers is that they often will buy the property as-is or not place any contingencies within the offer requesting repairs, etc. By offering to do the same and purchase the home “as is” you are upping your chances of having your offer accepted.
Write a Letter
While it may not always help, many sellers like to know who will be purchasing their home and what it will be used for. All-cash offers are often investors who want to flip and sell the home for profit so by adding a little heart-felt message highlighting the reasons you love the home for you and your family, the seller may get sentimental and choose to accept your offer over the investors.
Offer Above Asking Price
Make your offer appealing to the seller by offering above asking, or if possible, above any other potential offers that may be placed. Oftentimes your agent can find out what other offers were placed and thus allow you to place an offer above the rest, making your offer looking more appealing.
Related: What is a Mortgage Point?
Be Flexible
Flexibility is key. If the seller is motivated to sell, get the ball rolling. If the seller has a contingency in place such as needing to purchase a new residence prior to closing, make sure they know you are flexible and will work with them to ensure the process fits their specific timeline.
Each offer is unique and while many people choose not to compete with all-cash offers, by doing so you may be surprised and end up with the home of your dreams. While these tips will be helpful, the biggest way you can improve your chances is to work with a qualified agent who can help assist and guide you through the purchase process and barter and negotiate with the seller on your behalf.
Cash offers are often king but there are other terms that can be more attractive to potential sellers.