All-cash home buyers often feel as if they have leverage in negotiations, which is often true. This may lead them to have more contingencies and negotiate a lower price when buying a home. The best way to compete with them is to make the process as easy as possible for the home seller. There are several ways to accomplish this, which we discuss below.
4 Tips on how to compete with all-cash offers when buying a home
Every situation is unique, but there are certain universal tips that can help you secure a home purchase despite competing all-cash offers. The following are four useful insights on how to compete with all-cash offers.
Make the transaction process easy for the seller
Home selling can be a difficult process for the seller, but it does not have to be. You can take steps to ensure a smooth and fast process for them, which makes it more likely you are able to be accepted over all-cash offers. Several tips to make the sale easier for the seller includes:
- Use a reputable lender
- Find an effective buyer’s agent
- Make a straightforward and clear offer
- Remain patient and flexible
The home buying and selling process can be a stressful time for all parties involved. By simply remaining patient and entrusting yourself with the right lender and buyer’s agent, it makes the process much easier.
Offer slightly more for the home
Perhaps the most obvious way to get the seller’s attention and compete with all-cash offers is to simply offer a higher purchase price. When combined with fewer contingencies and a more accomodating closing process, it is hard for the seller to say no to more money. Of course, you want to avoid paying more than you are willing or able to spend on the home, but if you identify a home that is worth paying more for and you have the long-term financial ability to handle the increased mortgage cost, then this can be a highly effective last resort.
Limit the number of contingencies
Some contingencies may be necessary. However, it is best to limit the number of contingencies by eliminating the ones that are necessary, which may make your offer more appealing to the home seller than the all-cash offer. For example, waiving certain financial contingencies to allow for a faster home closing can be an effective home strategy.
Accommodate the home seller’s needs
Some home sellers intend to buy a new home with the money from the sale. If this is the case, then you may be able to arrange for a delayed move-in, providing them with extra time to live in the home while they find a new house to purchase. This is something an all-cash buyer is less likely to offer. While it may be an inconvenience for a few weeks or up to a month, allowing for accommodations such as this can go a long way in securing the home of your dreams without making an all-cash offer.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129