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Bobby Kielty, Real Estate Pro in Canyon Lake, CA

How do you compete with cash offers if you are a financed buyer?

Asked by Bobby Kielty, Canyon Lake, CA Thu May 16, 2013

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Also, a nice letter from the buyer to the seller really works. Many sellers like to sell their home to a nice family and not so much to investors.

Of course a very good, clean offer helps. But price isn't always the most important to the seller.
0 votes Thank Flag Link Fri Oct 18, 2013
Hire an experienced agent who knows how to write clean offers that include the following:

1. DU findings
2. Credit Scores
3. Proof of Funds

Make the offer price be just slightly over recent sold comparables for the same type of house in the area.

Most importantly, remove the appraisal contingency. This means that the buyer will actually pay the difference if the appraisal comes in lower than the offer price.

Example: If homes in the area are appraising at $375,000, then offer $380,000 and be ready, able and willing to pay above the appraised value.

If you do this understand you are paying over appraised value but it will get you the home if it is a tight market and you really want home that has multiple offers.

There are a few other things I do for buyers who are competing with cash buyers but they proprietary information saved for my clients.
0 votes Thank Flag Link Fri Oct 18, 2013
Exactly what was said below. You may also have your lender get involved to back up how qualified you are. Your agent can also be trying to get as much information as possible, including trying to (if possible) find out what finance price would best outcompete a cash price. Good luck! While competitive, I am seeing persistent financed buyers get their offers accepted!
0 votes Thank Flag Link Sat May 18, 2013
Remove as many contingencies as possible, have a large earnest money deposit, bid over asking price, write a letter to the owner about why you want the home,

Contingencies on financed offers are the biggest hurdle for sellers. Each one gives you a reason to back out, and makes the seller more leery of actually closing on your deal.

By removing them, you eliminate their fears.
0 votes Thank Flag Link Sat May 18, 2013
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