Competing with cash buyers isn’t impossible, just difficult. Sure, some sellers will take the money every single today and there’s nothing you can do about it. But, if you go in with a strategy, you might have a shot. Here’s how to create one :
Figure out the seller’s goals – Determining what is most important to your seller can be key to getting your dream home, even when you’re not competing against an all-cash buyer.
Consider your contingences – If you’re willing to forgo a home inspection or secondary appraisal, you may have a leg up over buyers who won’t. This isn’t necessarily the best strategy. Without a home inspection, the property could have issues that may preclude you from purchasing. But if you’re dead set on this exact house and you’re pitted head to head against a cash buyer, it might be the best option to consider.
Get pre-approved – You can help soften your mortgage contingency by getting pre-approved, and offering a strong pre-qualification letter from your lender. If you’ve saved up a significant down payment and have excellent credit, this might be your winning strategy.
Make sure your mortgage broker is great – How can you make sure your broker is great? Research online and keep an eye out for any negative reviews indicating mortgages that fell through at the last minute. You are looking for someone thorough.
Make it personal – If you’re competing against all-cash flippers, you already have a leg up : Most buyers don’t want to see the home they loved and lived in destroyed or turned into another cookie-cutter development. Try including a letter telling the sellers about yourselves and your hopes and dreams for their property. Putting a face to a name – and a story to a face – can be a valuable way to secure the home you want.
