Nothing puts a seller’s mind at ease quite like an offer of cash in hand. These buyers seem to promise a quick closing and seem to have a lower liability than other customers. If you need to purchase property with the help of a mortgage lender, how can you beat their offer? How can you compete?
What can help give you an edge?
If cash offers ruled the real estate market, mortgage lenders would likely be obsolete. It is possible to win over a seller who has competing cash offers. However, your offer will need to have something the cash offer does not. The following are ways you can improve your offer:
- Pair with a reputable mortgage lender.
- Present pre-approved mortgage letters with your offer.
- Decide what fees or restrictions you are willing to waive.
- Determine the seller’s values and adjust to them. Do they want a quick sale or a kind caretaker?
- Invest time in a personal letter that showcases your emotions and personality.
- Increase your down payment or raise your offer.
These are only a few of many ways you can present yourself as the right choice for the property. Every seller is unique. When you tailor your approach to fit their goals and needs, you help set yourself apart from the others.
How can you address the seller’s concerns?
If you are worried about your cash competitor, it can be tempting to investigate them or ask the seller all about their offer. However, sellers might consider this an invasion of their privacy or an inappropriate line of questioning. Instead, try narrowing down the seller's motivations and their concerns.
Some sellers have a strict schedule. If they are facing a divorce, the start of school or other financial pressures they may want to sell right away. In that case, you will want to have a financial plan in place to act as soon as possible. This could include compensating the seller for delays they would not face with a cash offer. Others are looking for the right price, or the right buyer.
Even if you think you are the perfect candidate, the real estate market can be intimidating. You’ll need to put your best foot forward to buy your property, not a future lawsuit. O'Brien Legal helps buyers like you perform due diligence prior to closing to avoid missing out on your ideal property.