The saying may be “cash is king” but not all buyers that pay all cash get their offers accepted – even if the cash offer is full price.
In this competitive market, here are some ideas for making your offer one that is a serious contender.
- Encourage your lender to call the listing agent when you submit an offer. I’ve had this work for quite a few of my clients when they were up against cash buyers or in a multiple offer situation. If the lender is able to share the strength of the buyer, the listing agent and seller may foresee the loan process as a low risk.
- Buyers – write a letter or make a video to submit with your offer. At first this may sound cheesy but I know countless buyers who have made a connection with the seller by showing the seller how vested they are in the home.
- Having a flexible time frame can be very appealing to sellers. If a buyer is able to offer a quick escrow, a lengthy escrow, or a rent back, this may win the sellers over. Selling a home (as well as buying one) can be a stressful process. Alleviating the stress involved with timing can be a huge selling point for you!
- There are certain time frames in the offer that can be shortened to bait sellers. What can you shorten? Just about anything. You can offer to do your inspections sooner, to remove your contingencies sooner, to close escrow sooner, and so on. Ultimately, sellers just want security that the deal is moving forward so anything the buyer can do to remove that shadow of doubt, the better.
- Waiving contingencies is another way to try to seal the deal. A word of caution here: buyers should only remove contingencies that they are absolutely certain about. For instance, some buyers may choose to waive the appraisal contingency because they have the ability to buy the home no matter what the appraisal comes in at. This option should be discussed with the lender first of course. However, it may not be wise to remove an inspection contingency unless you’ve all ready had an inspection done.
- Another technique that some people use is releasing their deposit to the seller upon removal of contingencies. By doing this, the seller is able to get a portion of their proceeds sooner, which may tip the scales depending on the seller’s situation.
By Holly Schwartz
Holly Schwartz is a realtor with Villa Real Estate who lives in Newport Beach and has been featured on HGTV’s “House Hunters.” She can be reached at HSchwartz@VillaRealEstate.com
