Can you compete with cash offers? Absolutely!
Many aggressively priced homes for sale are still receiving multiple offers. If you are trying to purchase one of these high-demand properties, you may be competing against cash offers.
Here are 6 things to know before making an offer in a competitive offer situation:
1. Select a full-time professional buyer’s broker
The listing broker represents the seller’s best interest. You need to have a broker that represents your best interest. Be faithful to that broker, they will get you in to see new listings right away and will work to find homes that are not even on the market yet. Many secondary real estate websites have inaccurate and/or delayed information and your broker will always send you a listing directly from the multiple listing service.
2. Be prepared to react quickly
Get pre-approved for your loan. Find out what the lender needs and get all the documents to them right away. Do you neighborhood reviews in advance so you know which neighborhoods will work for you.
3. The lender makes a difference
Your broker will know which lenders deliver on time. If you submit an offer with a pre-approval letter from an unreliable lender, your offer may not get accepted even if it is the best offer. Avoid the “.com” lenders but DO shop around for the best rates. If you need a lender, we can provide you with a list of trusted lenders.
4. Don’t believe everything you read on the internet
Do not think you know the real estate market by following or watching Zillow. Zillow’s “Zestimates” are not accurate. For example, they do not take into consideration absorption rates ( supply and demand) and may only be using above-grade square footage. Your broker has accurate information and can interpret the data so you can make the best decision.
5. Make your best offer first
In this competitive environment, a seller is going to choose the best offer to accept. Sellers are not going to waste time with a low offer and if there are multiple offers, they might not counter yours.
6. Price is not the only component sellers consider
Your broker will call the listing agent and ask what terms and conditions are most favorable for the seller. It might be that the seller’s priority is to close in more than 30 days or they might even want to delay possession of the new owner until they can close on their new home. You can also make your offer more favorable by having a larger amount of earnest money and shorter contingency time frames.
Stack the cards in your favor by using these techniques. If you have additional questions, please don’t hesitate to reach out to our team. We have 5 full0time brokers ready to help you in finding your next home.