I'm not going to draw this out and lie to you, cash is king. If the offer that is higher than yours is an all cash deal, move on and find another property. There have been times where I have told the owners "loan or cash...Everyone gets paid at closing" and they took the higher offer with a mortgage. Everyone is happy on those deals.
This is a good reason to have a buyer's broker. One that is skilled at what the/she does, and is able to get the seller's ear... It can possibly be a win for you.
If you have any other questions, feel free to call me anytime.
REMAX NEW YORK
261 4th Avenuue, Brooklyn NY 11215
When you say you are pre-approved, do you mean that you went through an underwriting process and the bank issued you a loan commitment subject to locating the purchase property and appraisal of the same? If you did not go through an underwriting process and received a commitment, then you are not really pre-approved, you are only pre-qualified and that is a lot less solid than an actual commitment.
If you are simply pre-qualified, you may want to show proof of income (W-2s or 1099 forms) and your credit report to the seller and/or listing agent. This is a little unorthodox, but when you show proof of income, assets and your credit report, it will really put the listing agent and/or seller at ease with the fact that you can secure a mortgage. Many people do not feel comfortable doing this because it is quite personal information, but it can be the difference between getting the deal or not.
You should also simply give your highest and best offer and make sure it is presented to the seller. When you give the offer make sure you include all of your qualifying information and your attorney name and phone number (this shows you have an attorney and are ready to go). If your offer is subject to an inspection, make sure you have an inspector at the ready so you can set it up ASAP after your offer is accepted. Seller want buyers to move quickly, especially with a hot property so be prepared to move lightning fast.
If you want, give me a quick call and I can give you more advice. Either way, good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783