In this crazy market, many people think cash offers are the only way to win. But if a financed offer comes in that meets the seller’s timeline, wants, and needs, then they have a chance of beating a cash offer. Alexis Nickley sat down to give her top three tips on competing with cash offers.
Work with an experienced Realtor
When you work with an experienced agent, they know how to communicate with the listing agent effectively. They will be able to talk with the agent to understand the seller’s wants and needs to determine the ideal offer.
Cash can close in two weeks, but that might not be appealing to them. What if they need a longer close or a short inspection period? Your listing agent should be able to give you good tips to compete with cash offers.
Appraisal Contingency
If you are financing, then you will typically need to have an appraisal contingency. Cash offers do not need to have an appraisal. (If you want more information on an appraisal contingency, check out Alexis’ previous video.) As a finance offer, you can waive that contingency, agree to pay a certain amount over the appraised value, or you can agree to pay the purchase price no matter what. This is up to you, your specific loan, and lender to get around appraisal contingency. Doing these things puts you at the same level or close to the same level as a cash offer.
Getting creative with your offer
The final piece of advice Alexis has for us is to be creative. This is another place where having an experienced Realtor comes in handy. They will be able to help advise you in ways to differentiate your offer from cash offers. Sellers have a lot of expenses when it comes to selling their homes. A potential buyer can offer to pay all title fees, ultimately increasing the price of your offer. You can also offer a leaseback to the seller. If you aren’t in a rush to move in, giving the seller a few extra weeks to move out can be really helpful to them. There are so many ways to make your offer stand out.
Just because you have a financed offer against a cash offer doesn’t mean you will automatically lose. Once you find an experienced agent you can trust, they can give you endless options on how to win against a cash offer.
Want more information on buying or selling a home? Give us a call today to get in touch with one of our Realtors, 407-906-2456, or send us an email at info@thenickleygroup.com.