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How to Compete with Cash Offers When Buying a Home

The real estate market is competitive, and it is not uncommon to compete with other buyers, some of which may offer cash to avoid or reduce the loan amount. This can make the selling process easier, and the seller may at first be inclined to accept the cash offer. However, there are things you can do as a prospective buyer to help you compete with cash offers. These five tips should help you compete with cash offers when buying a home and help ensure you do not miss out on your dream home due to competing offers. 

Make your first offer your best offer

A common mistake many home buyers make is offering less than their best offer and having their offer declined for their dream home. If you have found the home that you enjoy the most, then offer your best offer first. This lets the seller know that you are serious, and they are likely to consider your offer much more strongly. This also can ensure the home selling process goes smoothly and quickly despite not making a cash offer, particularly if you are already pre-approved. 

Find out the seller’s desired terms

Cash offers are intriguing to sellers, but prospective buyers who make cash offers often feel as if they are in a position to negotiate their own terms. This is an area where you (the prospective buyer not making a cash offer) can take advantage. Find out the sellers desired terms and do your best to accommodate them with your offer. For example, you may allow for additional time before moving in as the seller finds their own home to buy or request to make repairs yourself rather than include it before closing. 

Establish a connection with the seller

It never hurts to get to know the seller or selling agent. Be sure to show some personality and friendliness. Let them know why you enjoy the house. Of course, this may not influence their decision, but it never hurts to show kindness and personality when dealing with the seller. Especially when there are multiple offers on the home, being memorable is important. 

Move the process along quickly

You can move the closing process along quickly by being upfront about your financial situation (credit score, how much you have in the bank, etc.), pre-ordering an appraisal and ensuring a quick inspection. The seller simply wants to know they are receiving fair value for their home and ensure the process is as least complicated as possible. By making them a fair offer initially and having your financial information readily available, you may be able to contend with a cash offer. 

Remain diligent and willing to negotiate

The home buying process can seem overwhelming at times. By taking things one step at a time and remaining diligent in your pursuit of the perfect home, you put yourself in a great position to get the home you desire, regardless of competing cash offers.

EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.

EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129

(615) 896-5656

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