Home Buying in Brooklyn>Question Details

Rhayward, Home Buyer in Brooklyn, NY

I've been trying to buy a house but those cash buyers are making it way too difficult for the sellers to even consider my offers.

Asked by Rhayward, Brooklyn, NY Wed Apr 17, 2013

Are there any tips to beat them???

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Answers

17
Rhonda Holt’s answer
Hello, if you're out there investing then most likely an all cash buyer will get the deal because they don't have to get financing from the bank and they close within a few weeks instead of months.

But cash buyers are beat out sometimes by regular buyers because they usually put in ridiculously low offers that will sometimes insult the seller. Of course if your offer is stronger and you have all your financial documents in place, good credit , a prequalification for a loan is in place, you have a lawyer then you can definitely beat a cash buyer. So you have to have things ready to go and be ready to move on the deal fast so the seller doesn't reconsider.

Also cash buyers usually take properties in any kind of condition and will even take properties with tenants because they have so much cash on hand to handle situations like these. This is definitely hard for a person that has to get financing because you will most likely get an inspection and will want to renegotiate the price and ask for repairs or replacements. Not getting an inspection can be extremely risky and I do not recommend it because you will need alot of capital to do repairs and replacements after your purchase and may end up in serious debt and loss.

So before you go after a property a cash buyer wants be sure its the type of property that's right for you and that you can handle all that comes with it. Good luck!
0 votes Thank Flag Link Fri Feb 14, 2014
BEST ANSWER
Rhay,
I'm confident you are aware you have not provided sufficient information for anyone to provide any actionable direction.
-
Of course you think it 'cash buyers' that is creating your problem.
The reality is your purchase offer(s) are not competive.
There are MANY reasons for a purchase offer to be non-competitive.
These reasons are not always 'cash buyers.'
-
Wake up and smell the coffee.
Submit an offer that fits the expectations of the seller and not polluted with exits and contingencies.
It"s not rocket science.
It's not magic.
-
Work with an experience real estate professional.
Follow their guidance.
Be adaptable. agile and able to compromise.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
2 votes Thank Flag Link Wed May 1, 2013
Rhay,
I'm confident you are aware you have not provided sufficient information for anyone to provide any actionable direction.
-
Of course you think it 'cash buyers' that is creating your problem.
The reality is your purchase offer(s) are not competive.
There are MANY reasons for a purchase offer to be non-competitive.
These reasons are not always 'cash buyers.'
-
Wake up and smell the coffee.
Submit an offer that fits the expectations of the seller and not polluted with exits and contingencies.
It"s not rocket science.
It's not magic.
-
Work with an experience real estate professional.
Follow their guidance.
Be adaptable. agile and able to compromise.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
1 vote Thank Flag Link Wed May 1, 2013
What is your agent advising...always make your best offer within your means.
1 vote Thank Flag Link Wed Apr 17, 2013
The only way to even stand a chance against cash buyers who do not have to get financing is to get everything you need in order and ready to go.

When you go out to see a property especially in the early phase make sure you put in a written offer right then and there if you're sure about the property, you should have gone to a lender for a prequalification that you are walking with and have your mortgage lender info, have your credit report on hand with all three scores and no older than 3 months old, have proof of income ready, have your lawyer information, to move faster sign your contract first and have it contingent upon the inspection.

I hope these tips will help you, its just about getting to the property early, putting in an offer slightly higher than a cash buyer and having all your paperwork and contact information in order.

Feel free to call me anytime.
0 votes Thank Flag Link Fri Oct 25, 2013
Make a better offer. Offer your best price first, close within 30 days and leave out contingincies.
0 votes Thank Flag Link Mon Jul 22, 2013
Best place to start is to hire an Exclusive Buyer Agent to represent you. EBAs represent home buyers only, and work to get you the best price and most favorable terms. You can go to NAEBA.org for a referral to an EBA in your area.

I'm an EBA and I wrote a book called "Buying a Home: Don't Let Them Make a Monkey Out of You". It will be the best $6 you've ever spent. Follow the link below!

Best of luck!
0 votes Thank Flag Link Mon Jul 22, 2013
I know exactly what you mean because cash buyers are out like vultures right now and it is hard to beat them when they are not dealing with a bank and all their requirements and they can close faster.

But you have something over them and that's a more realistic offer price. Most agents are annoyed by cash buyers because they come in with their fast talking and then give you a super low price and agent and seller loses money on the deal.

Another way you beat cash buyers is to call on a property immediately forget emailing just pick up the phone. Once you get in to view the property let the agent or broker know how much you want it, but not in a desperate way.. Then make sure you have your pre-approval in place with your bank rep's number, lawyer info, credit report and copies of your income to let them view on the spot so they know you are super serious about the property.

Don't feel that cash buyers can beat you all the time because I pass them by based on the things I said above and work with a buyer that really wants the property and will do and provide the information I need to get it. Hope that helps!
0 votes Thank Flag Link Thu Jul 18, 2013
Below are some great tips how to beat an all cash home buyer:

http://www.realtypin.com/news/story/1189-the-top-5-ways-to-b…
0 votes Thank Flag Link Thu May 9, 2013
PNC is absolutely not the only bank who issues a conditional commitment before you find a property or execute a contract. At the end of the day it will not give you the same buying power as a cash buyer. Cash buyers are not at the mercy of appraisal reports, title reports, etc. You can be pre-approved or committed based on a DTI which itself is based on a limited amount of real estate taxes, and the property you find could exceed that amount and there goes your commitment.

All you can do is use what you got. You're a buyer who, like the majority of buyers, is financing. If you find that you're constantly in competition with cash buyers, all you can do is make stronger offers. Cash buyers, more so investors, expect to pay less than you, so they usually offer less, so you'll have to offer slightly more and find a way to make it work.

Investors look to buy distressed sales and properties. Even REO properties that go in the market usually accept offers from buyers who are buying primary residence over investors for a specific time frame. So find a way to look for the properties that are within your reach.
0 votes Thank Flag Link Sun Apr 28, 2013
PNC Mortgage is the only Bank willing to issue a Conditional Commitment without a Contract of sale. We approve based on the Buyers criteria, Credit, Income, and Assets. This will give you a fighting chance with the "All Cash Buyers". What could be better then making an offer and submitting your Commitment at the same time! Thats the way to seal the deal!!!

If you have any questions please feel free to call me anytime!!

Christopher Miceli
PNC Mortgage Loan Officer
NMLS#22399
Phone (646)-623-2492
0 votes Thank Flag Link Sun Apr 28, 2013
In this market you may unfortunately have to move fast especially if you find a good property that's affordable. There are many investors out there that are simply looking to buy properties in order to flip them. They buy fast and pay cash. The unfortunate truth of the matter is that cash is king. My advice is to work with a good agent that is dedicated to finding you what you need. Once you find a property that you like, don't waste time, be aggressive and put in a strong offer.

Erik Tejada
Licensed Realtor / Notary Public
Keller Williams Realty Empire
9120 4th Avenue
Brooklyn, NY 11209
(718) 954-8430
0 votes Thank Flag Link Wed Apr 17, 2013
Offer more money...
Be flexible on closing date...
0 votes Thank Flag Link Wed Apr 17, 2013
Dear Rhayward:

First of all it depends on the type of property you are trying to purchase. As an example, if it is a bank owned property, it is hard for you to compete. You can still get the property, but most likely you will be paying a lot more than the all cash buyer which may make the deal not so good for you. On the other hand, if you are dealing with the average homeowner living in the house, the cash aspect of it is not as big a factor. The problem may be that you are not giving high enough offers. This is more likely the reason you are not getting the property as opposed to the fact that you are not an all cash buyer.

If you want, contact me direct and we can discuss this further and I can try to help you put together a strategy to better the chances of you getting your next offer accepted! Either way, good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Wed Apr 17, 2013
Also, like Kathryn said, KEEP LOOKING!
0 votes Thank Flag Link Wed Apr 17, 2013
Well I you're out there looking for homes and your offers are more or less what the cash buyer's offer is, then you can assume that more often than not the seller will accept the cash offer over a finance offer.

Consider making stronger offers. Cash buyers tend to offer less, they expect a better deal because they're paying cash and able to close quicker, and it's also more of a sure deal. If your offers are higher than the cash offers, enough to compensate for the act that you're financing, you might see better results.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
0 votes Thank Flag Link Wed Apr 17, 2013
You have to be looking in your realistic price range for what you are qualified for.
Get pre-approved, make sure all your savings for down payments, closing costs and reserves are verified.
It always surprises me when I am representing a seller and offers come in contingent upon financing and with a little scratching I realize, no one has actually verified that the buyer has the cash available that is needed. Often the mortgage Broker/Banker has done no more than run a potential buyers credit. Hence the "pre-approval" or " Pre-qualification" is not worth the paper it is written on.
Do your home work, and get all your ducks in a row, have an attorney lined up, a home inspector lined up.
When you see a house you like and it is in the price range you are qualified for, make the best offer you can afford, the chances are that there are many offers in the first week, the seller or the sellers broker does not have time to work out which ones are qualified if they just did a bit more asking to see if they are qualified. They do not have time to make counter offers to everyone.
The one with the most complete offer with all the back up documents to back up their offer in the simplest fashion gets it....and not always the cash buyers.
Gone are the days of making a low offer and waiting for a counter offer.
Work with a buyers broker that really knows the neighborhood/s that you want to buy into.
Good luck.
Yours,
Kathryn Lilly, Broker
Realty on the Greene, LLC
718-858-7600
0 votes Thank Flag Link Wed Apr 17, 2013
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