Staying Competitive Against a Cash Offer

Posted On March 08, 2018

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With home buying and selling season on the horizon, some buyers are wary of the competitive nature of today’s market, due to limited homes for sale.  For buyers worried about competing against an all-cash buyer, know that your offer can still get accepted.  Review these strategies for competing against an all cash buyer and winning!

Preapproval Counts

When competing against an all-cash buyer, getting preapproved matters.  Work with a lender that can issue a letter of preapproval to show the seller you are serious.  Expedite your loan preapproval by providing all of your pertinent financial documentation early and making yourself available for any questions.  The sooner the lender can issue a preapproval, the more bargaining power you will have.

Reduce Contingencies

Contingencies are in place to protect the buyer and the seller.  In some cases, expediting the appraisal or removing contingencies can make the offer more competitive.  A typical home purchase takes four to six weeks from contract to closed sale.  Waiting for contingencies to be met may add additional time.  Before removing any contingencies, it is best to consult a mortgage professional. 

Inspect Quickly

In addition to expediting the appraisal and reducing contingencies, getting an inspection completed quickly can improve your buying power.  Work with an established real estate team with relationships in your area.  Paying extra for an inspection can also speed things up. 

Offer More

In most cases, a buyer making an all-cash offer is expecting to pay less than the asking price.   Offering more than the cash buyer can sometimes be enough to sway the seller.  While a few thousand dollars might not be enough, an offer that is 5% higher can put you in a better buying position.  Consult with a mortgage professional before upping your offer, to determine how much it will add to your monthly mortgage payment. 

All-cash buyers do not always win the home.  Before making any financial decisions related to buying or selling a home, it is best to consult a mortgage professional to help you make the most competitive offer for your desired home. 


Sources: Zillow