Credit buyers feel as though they cannot compete with cash buyers, and this can be upsetting when a cash buyer places a bid on a person’s dream home. When a seller receives a cash offer they do not have to worry about banks or loans and the entire process tends to run smoother and quicker. This is what makes this type of offer so much more attractive to a seller. That does not mean, however, that it is impossible to compete with one. So how exactly do you compete with a cash real estate offer? Well, the trick is always to make the credit offer look more appealing for the seller.
A pre-approval letter from a lender indicating that the buyer is a well-qualified and approved can help justify some of the sellers concerns. Those who are comfortable being open with the seller should also consider making financial information available to the seller, such as employment information or assets, to help bolster the claim that a loan for the particular person is a sure thing.
Be prepared to go higher
Cash buyers know that their offers look appealing to sellers because of their ability to pay cash up front. For this reason, at times they expect some kind of discount on the listing price. The credit buyer can help counteract the appeal of the cash offer by offering a higher bid. See: 6 Ways You Can Beat a Cash Offer When Buying a Home.
Try to speed the process up
Certain steps, such as waiting for appraisals and loan approval, can end up adding weeks or months to the process. Speak with the loan officer to try and learn what can be done to speed up the timeline. When an offer is made on the home, the credit buyer can then let the seller know that they have already contacted the lender and asked them to order the appraisal right out of the gate. Read: How to Make an Offer On a House.
Send a personal letter
Sending a personalized letter may or may not have any impact whatsoever if the seller makes analytical decisions. Believe it or not however, there are some who will make decisions based on emotion. For more information, read: Yes, You Can Compete With All-Cash Buyers; Here’s How.
The closing date
One of the terms in a real estate offer that is almost always very important to a seller is the closing date. When you are competing against a cash offer being super flexible with the sellers desired closing is really important. If the seller want to close on a specific date, make that happen.