In the real estate world, money rules. Sellers want to get paid. Following the recession, all-cash offers ruled. They often still do. But, buying a house outright takes a fair bit of coin. Most folks simply don’t have that much cash on hand.
Luckily, this doesn’t mean all hope is lost. These four tactics can help you compete against all-cash offers:
Don’t wait to submit your offer. Submit it immediately. And, assume you won’t have the ability to negotiate. Make your best offer first. If you’re afraid of overpaying, take a close look at the current market rate.
Be a Bit Larger
Submitting the biggest offer doesn’t automatically mean you’ll win, but it often helps. Typically all-cash offers are made by investors. Because investors are looking to make the biggest profit possible, they often aren’t submitting the biggest purchase price. If you can pay more, this can give you negotiating power.
While a seller wants to get out of their house, they might not want to get out right away. This is especially true if they are buying a new house on contingency. Make sure to emphasize your flexibility. Allow the seller to set the timeline and some of the specifics. The more flexible you are, the more attractive you are as a buyer.
Write a sincere letter to the seller. Explain why you want the home and the future you imagine having there. Maybe you’re getting ready to start a family. Maybe your family is getting ready to expand. Tug at the seller’s emotional heartstrings. While this won’t always help, it will in some cases. There are a lot of homeowners who become very attached to their home. When they are ready to sell, they often want to leave their home in the hands of someone who will love it.
Before you go house hunting, make sure to get pre-approved. Give me a call today.