5 Ways to Beat an All-Cash Offer

Money talks when it comes to making an offer on a home.  Sellers find cash offers appealing for a good number of reasons, they can close quickly, they don’t have to worry about the buyer’s financing falling through, and most cash buyers want the process to be completed as quickly as possible.

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But what if you don’t have an all-cash offer?  I was house hunting in the Phoenix area in 2008 and every home I made an offer on was outbid by investors paying cash.  Eventually, I had my offer accepted.  It took some preparation on my part, but just because you don’t have cash doesn’t mean you’re out of the running for finding your dream home.

Here are a few ways to make your offer look attractive to sellers.

  1. Go Beyond Pre-approval

Presenting a mortgage pre-approval letter from your lender when you make an offer is a traditional way to show you’re a serious buyer.  If you want to show potential sellers that you have proof, even beyond pre-approval and pre-qualification, you can have an underwriter review of your application.   What this does is allows the buyer to submit a loan commitment letter to the seller with your offer, pending appraisal, making your offer more appealing.

  1. Make Your Best Offer Up Front

In certain areas, you simply cannot combat all-cash buyers.  These can be investors who move quick and often times are willing to not only pay all-cash but pay over asking price.  Your best way to combat their strategy is to put your best foot forward immediately, make your final offer upfront.  You could also sweeten the deal by not asking for closing costs which usually come out of the seller’s pocket.  You can also tell the sellers that you will not ask them to fix minor problems discovered during the home inspection; you’ll only ask them to fix structural and safety issues.

  1. Be Flexible

It’s a good idea to ask what the seller is looking for.  Does the seller need extra time to find a new home? Do they prefer a quick close? Do they want to control who processes escrow and title? Once you know the seller’s terms, make your offer even more attractive by showing them that you’re willing to work with them.

  1. Consider an “As Is” Offer

An “as is” offer means that you’re willing to buy the home without asking the seller to make repairs or for the money to fix anything that comes up during the home inspection. This move is undoubtedly risky, but it’s an aggressive move that will make your non-cash offer way more alluring than an all-cash offer.

  1. Make Yourself Known to the Seller

Write a letter to the seller.  Not all sellers are looking to sell the home they loved to a likely investor.  Buying and selling a home tends to pull at emotional heartstrings.  Try letting the seller know who you are, why you like the home and what your intentions are.

Apply with us today to know how much you can afford and lock in favorable home loan terms!

The Certo Team
55 N. Arizona Place Suite #103
Chandler, AZ 85225
602-429-6789

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