How To Compete With An All Cash Offer

Dated: 07/19/2016

Views: 370

Johnson City Homes

It happens more frequently than you might think. Home buyers find the perfect property, and make an all cash offer that a seller can seldom refuse. There's a reason the other buyer loves it, and you do, too. You contact your agent and find out that the competition has offered all cash in their offer. How will you compete with that to stand a chance at getting an accepted offer?

According to real estate data company RealtyTrac, approximately 1 in 3 homes purchased in the U.S. are all-cash. If you're unable to offer cash, and need financing, here are some tips that may help you compete with an all-cash buyer:
1. Be Prepared - Get A Pre-Approval. While cash is king, a pre-approval is the next best thing. If you want home sellers to take you seriously, you need a mortgage pre-approval, not just pre-qualification. 
2. Big Earnest Money Means You’re Serious - Put up as much earnest money as you can -- even the entire down payment if at all possible. Impress the seller, attach a check to your purchase offer when your agent prepares it. 
3. Write Your Offer for a Higher Price - Yes, it's okay! Sellers will look for the 'highest and best'. Even if you're a few hundred dollars over, effort, speaks volumes. 
4. Offer sentiment - Maybe you've heard of a heart-felt letter to the seller when a buyer knows the home will be perfect for raising a family. This never, ever, will harm your offer. Be honest, tell the seller what you love about the home, facts about your family, and perhaps even common interests, like the Atlanta Braves pendant you saw hanging in one of their bedrooms. 

If all of your effort fails, don't give up looking for the next best thing for you and your family. We at The Shields Team have experience in working with buyers who have felt the pain of losing an offer to a competing buyer, but we're here to assure you all is not lost. We're ready and willing to help you move forward if you've had a rejected offer. Call us today at (423) 433-6517, or stop in our office for a visit! We're located inside the Keller Williams Realty office at 1033 Hamilton Place in Johnson City. We're here to assure you there is a perfect home for you, and we're going to help you get in it!

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Rayne Price

Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....

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