In a seller’s market, the rules of the real estate game make a dramatic shift. In a buyers market, you can take your time and know that there’s probably no one waiting in the wings to pounce on the property your Realtor brought to you, or you just found on the MLS (multiple listing service). On the flip side, cash is king in a seller’s market, and you will need to act quickly and get some skin in the game before the property you’re interested in goes under contract.
It’s important to understand that cash buyers bring a sure-fire and expedient assurance to the table for home sellers. It can be tough to overtake them when you compete for a house. However, when you don’t have the cash to compete, you can still raise the bar and sweeten the deal to appeal to the sellers in another way.
Read on as we explore five ways to compete with cash buyers in Greenville.
Investigate
One of the best ways to compete with cash buyers in Greenville is to understand the seller’s motivations. Some sellers have their eyes on the cash, so their biggest concern is the bottom line, while others may have a timeline pressuring them to sell quickly. Ask the seller questions: Why do you need to sell? How quickly do you need to sell? What are your plans after selling? You can construct your offer to appeal to all possibilities and stand out far beyond others by getting the answers to these questions and keeping them in mind. Your extra efforts to meet the desires of sellers and preparedness in the presentation of your offer aren’t likely to go unnoticed.
Underwritten
To be fully prepared to compete with cash buyers in Greenville, one thing you can do is to have upfront underwriting. Preapproval from a lender may not be the game-changer necessary if they need to sell fast, but having a bank and some numbers in your corner will ease sellers’ minds and allow you to stand out from the crowd. When you don’t have the cash-on-hand to outright purchase a property, having undergone the underwriting process before making the offer will convince the sellers that financing issues from the buyer will not cause problems or delays when it comes time to close. It also tells the sellers just how earnest you are about buying their property to help you stand a chance against the cash offers they have in hand.
Above Market Offer
Money is the key to most sellers’ hearts. Money talks, so if you want to be the loudest offer on the table, come in with an offer above the asking price to compete with cash buyers in Greenville. Cash buyers can close quickly and with little to no hassles for the seller, but, in most cases, they have to get the property at a discount for it to be financially feasible. In addition, you could add an escalation clause to your offer, meaning that if a higher bid than yours comes in, you are willing to automatically increase your offer by a fixed amount, such as $1000 more, up to a specific limit.
Include Incentives
You can take other steps to compete with cash buyers in Greenville, such as making a larger earnest money deposit than requested. Buyers typically need to offer 1%-3% of the purchase price. You can also let the seller know that you’re willing to work with any third-party vendors of their choice, such as the escrow or title company. You could also set an upper limit from the seller for credit on any repairs if the inspector discovers any issues during the inspection.
Another way to appeal to sellers is to be flexible with taking possession of the property. They may need time before their next home is ready, and your willingness to lease back the house, saving them an extra move, could be the golden ticket to attaining the home of your dreams. You need to be more than agreeable when meeting their needs if you want to beat out an all-cash home offer. Of course, removing contingencies can be risky, so if you’re offering to purchase the house as-is, be confident that you have a team of professionals you can rely on for the results of your quick inspection and appraisal.
Higher the Right Realestate Professional
A knowledgeable and market-savvy realtor will walk you through all of your options when it comes time to compete in a bidding war, whether an all-cash buyer is involved or not. The game doesn’t end when your offer is submitted. It’s just the beginning. That’s right; you should always expect reciprocation from other buyers.
You not only have to keep other buyers in mind. Even if there isn’t any competition, the seller can and will counteroffer in many cases. Be sure the Realtor you hire is ready to go to battle for you and keep you well informed and updated along the way. The right Realtor will inform you of your best course of action and even get some insights from the seller’s agent that could give you an edge against cash buyers. Sometimes it’s more than what’s in the offer; it’s selling you — the buyer. Does your Realtor know you well enough to be able to do that?
Pitt Home Buyers
At Pitt Home Buyers, we work with sellers and buyers to get the best deal for all parties’ situations. Put the experts at Pitt Home Buyers to work for you to compete with cash buyers in Greenville easily. At Pitt Home Buyers, we will take the time necessary to listen to your goals and to understand any hurdles you feel are standing in the way of homeownership. Then, Pitt Home Buyers can help you to the finish line. Since we are cash buyers, we know the best ways to beat cash buyers!
You can rely on our highly regarded full-service team at Pitt Home Buyers from appraisal to inspection, all the way to the closing table, to help you win the bid and get the best deal possible. Let the pros at Pitt Home Buyers guide you step by step through the process from prepping yourself financially, attaining your loan, carrying out negotiations with sellers, and closing. Contact Pitt Home Buyers today at (252) 227-0274!