Don’t have stacks of cash lying around like The Wolf of Wall Street to spend on a new home? Don’t worry; you can still compete with these kinds of buyers.
“Money talks” is a phrase that rings true in almost every corner of the world, from sports to real estate. All-cash means that there will be no mortgage, and that means that you won’t have to rely on lenders for anything. The housing market is firing up again, and bidding wars are the new normal. Unfortunately, sellers tend to favor an all-cash offer than those that depend on a mortgage approval. But not everyone has hundreds of thousands of dollars in between their sofa cushions, so what is one to do? Worry not, for here are three ways in which you can compete with cash buyers in a seller’s market.
- Bid higher – The highest offer doesn’t always guarantee a sale, but it can’t hurt to hike your offer up a bit. In order to beat the competition and temptation of cash, you’re going to have to make your offer more attractive. Sometimes the extra $1,000 on top of the listing price can be the determining factor in the seller’s eyes.
- Know what the seller needs – What are the terms the seller is seeking? Does the seller need extra time in the property to find a new home? Looking for a quick close? Having a real estate agent who can handle this early on will only increase your chances.
- “As is” can be the magical words – What can be more attractive to a seller than a buyer taking the home “as is”? They won’t have to spend any money on repairs or even lower their price.
Not having cash doesn’t put you out the game, you just have to find a new way to play it. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.