{"id":12084,"date":"2019-09-03T12:44:31","date_gmt":"2019-09-03T19:44:31","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=12084"},"modified":"2023-03-27T14:20:32","modified_gmt":"2023-03-27T21:20:32","slug":"proven-ways-to-compete-cash-home-offers","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/proven-ways-to-compete-cash-home-offers\/","title":{"rendered":"7 Proven Ways to Improve Your Offer and Compete With Cash"},"content":{"rendered":"

You\u2019ve heard it said so many times, and you can\u2019t help but roll your eyes: \u201cCash is king, especially in real estate.\u201d While it\u2019s true that all-cash bids are 97% more likely<\/a> to be accepted by a home seller, that doesn\u2019t mean you can\u2019t compete.<\/p>\n

There are plenty of ways to strengthen your offer and get yourself into that dream home you\u2019re eyeing. So, once you\u2019ve got your finances sorted and your financial documentation is all ready to go, what\u2019s next? Here are 7 ways you can compete with cash:<\/p>\n

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Source: (Ylanite Koppens\/ Pexels)<\/figcaption><\/figure>\n

1. Do Your Homework<\/h2>\n

When you\u2019re in a tough real estate market where competing with cash is typical, make sure you do your homework before making an offer. That means researching the seller and finding out everything you can about what they\u2019re looking for in a buyer.<\/p>\n

Don\u2019t presume to know what the seller cares about. Some sellers are more motivated by timeline, while others may be most motivated by your offer\u2019s bottom line. Certain sellers might even have specific ideas about which service providers they\u2019d like to use during the transaction.<\/p>\n

Your real estate agent<\/a> can likely find out exactly what the seller is looking for in an offer by talking with their listing agent. Knowing this upfront will enable you to meet their requirements while crafting your bid.<\/p>\n

You\u2019ll want to make yourself as attractive as possible to the seller. This might mean making certain concessions on your end. But remember, these concessions could be the difference between landing your dream home or being disappointed.<\/p>\n

2. Find a lender with local loan officers<\/h2>\n

Working with a local loan officer can send a strong message to both the seller and their listing agent that you\u2019re a serious buyer who\u2019s likely to secure financing.<\/p>\n

A quality local loan officer will have relationships with local Realtors and a strong record of closing deals in your area. Your loan officer\u2019s stamp of approval can give you an edge over the competition.<\/p>\n

3. Get underwritten upfront<\/h2>\n

Pre-qualifications and pre-approvals<\/a> are important early steps in the home financing process. But the truth is, they don\u2019t go far enough. Most are based off of incomplete financial information.<\/p>\n

The bottom line: they can\u2019t provide much certainty. So how can you show a seller that your financials are in tip-top shape and you\u2019re likely to get approved for a mortgage? You can get fully underwritten upfront<\/a>.<\/p>\n

Sure, getting underwritten upfront may be a little bit more involved than a simple pre-approval (which many lenders brag they can complete in just minutes).<\/p>\n

But there are also huge benefits: you\u2019ll have a true idea of how much home you can afford<\/a>. And on top of that, you and the seller will have a lot more certainty that your home financing will come through.<\/p>\n

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Source: (Oleg Magni\/ Pexels)<\/figcaption><\/figure>\n

4. Meet the seller where they\u2019re at<\/h2>\n

You did your homework, and you know what that seller is looking for. Now you have to meet them where they\u2019re at.<\/p>\n

Since you don\u2019t have an all-cash offer to throw around, you\u2019ll have to get a little more crafty. Here\u2019s where those aforementioned concessions kick in. When you\u2019re making your offer, be sure to include all of the seller\u2019s musts:<\/p>\n