How do you make a competitive offer when you are going against cash buyers? While a lot of the market is not paying cash, there are some people who are. You’re not out of luck, though. I have a few options for you that will help you be competitive and win your dream home.

1. Provide a level of comfort to the seller. If you are comfortable with it, show them your bank statements and credit scores to prove that you have your finances in order. They will know you have quite a bit of cash if you are putting 20% down on a loan.

2. Consider not doing an inspection. You always have the right to an inspection. But, if you are comfortable with not doing an inspection because you are buying as-is anyway, it could be huge for the seller to not have to deal with that. Inspections are a source of contention which could be avoided.

“If you are comfortable not having an inspection, you may be more appealing to a seller since they can avoid that possible contention.”

3. Have all the documentation ready for your lender. This way, all they need is a contract from you and an appraisal. This will cut down the process tremendously.

4. Expedite the appraisal process. When you are supplying the documentation, ask the lender if they can order an appraisal the day they have the address. Let the seller know this so they can have a quicker closing.

5. Cash buyers think they should get a discount since they are spending cash. This is not necessarily true. You could finance a little more to pay the seller more and the difference could only be $15 to $20 per month. The seller will choose you because you are providing more.

6. Provide a letter about yourself. If you write a personal letter about your family, it touches the seller’s heart. They know they are selling the home to someone who will love it as opposed to an investor, which means a lot to a seller.

If you have any questions about any of this or about buying or selling, please feel free to contact me. I look forward to speaking with you soon.