How to Compete with Cash Offers?
In the current "sellers" purchase market, buyers out-number sellers by a significant margin leading to competitive bidding on homes. Frustrated buyers who need to finance their purchase often asked "how can I compete against a cash offer?"
As a "financed buyer" in a sellers market, you need to take some additional steps to make your offer stand out against the others. Most buyers are walking around with a "pre-qualification" letter which are generally not a fully underwritten and vetted approval.
Question: How can a financed buyers offer carry the same weight as a cash buyer?
"You have to out-bid or out smart cash buyers! Having a strategy early in the process is critical to success.
Answer: If your loan is fully approved when making the offer, you can make a "cash-like" offer and remove the financing contingency with the offer. The financing contingency is the main difference between cash vs. financed offer. Remove that from consideration and you are on-par with a cash offer.
What is critical is that you need a lender who can back you and fully approve a loan prior to the offer! At Home Point Financial, we have a pre-approval system designed exactly for this purpose. We will approve you ahead of time to give you a competitive advantage in you home purchasing process.
We have had a lot of success with this very approach and have many satisfied clients successfully close on homes where they were competing against cash offers.
Call me and I will get your loan pre-approved so you have the best chance of success!