Finding your dream home is a great feeling. Losing it to an all-cash offer is not.
If you’re in a bidding war that includes a cash buyer, the seller might be tempted to accept that one. You can’t really blame them — an all-cash deal may look like a sure bet compared to one using financing.
But all is not lost, including that home. Here are five ways to compete against buyers who come to the table with cash.
- Get ahead of the game. Work with a lender to get preapproved for a loan. An upfront financial review provides proof your deal is good. And by proving that you qualify for a mortgage, you level the playing field back in your favor.
- Put more on the line. You might not be able to match your competitor’s cash, but you can put up more of what you do have. When you offer a higher earnest money deposit or increase your down payment, it tells the seller you’re a serious and viable buyer.
- Adapt your plan. Cash transactions are generally easy and quick. To compete, you need to be flexible in other areas that are important to the seller. Consider offering to do repairs yourself or agreeing to close on the seller’s timeline.
- Don’t sell yourself short. Let the cash buyer lowball. You’re better off making an offer at or above listing price. Let’s discover what else is important to the seller to make sure your offer is the most attractive.
We can discuss your options once you’re ready to make a winning offer on your next home. Get in touch today to get started.