Going head to head to cash buyers is always competitive. Cash buyers are seen as desirable because there are no banks involved and they’re almost always a guaranteed quick close. But don’t freight; there is still hope of getting your dream home!
Here are some ideas to help beat out those cash buyers:
20 Percent Down Payment
Save up a higher down payment for the price range. If you can come up with 20 percent or more, then you’re in a position to wave the appraisal contingency for financing with the bank. In simpler terms - the more cash you have saved, the better.
Take-It-or-Leave-It Home Inspection
This means that based on the home inspection, you’ll take the property with all its issues, but you still have the option walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found because you’re wasting your time finding your dream home too.
Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.
Less Expensive Homes
If buyers that are paying more beat out your offers, then you might want to consider looking in a lower price range. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.
Going up against cash buyers can be extremely discouraging. Although they are dealing in cash, does not mean the property is guaranteed to them but many investors think they can put in a low offer because they’re dealing in cash. Keep these ideas in the back of your head when you’re going to toe with cash buyers!