Writing Offers to Compete With Cash

Listing to a cash offer is frustrating to buyers. But this is not the time to give up. There are some strategies to take to potentially beat a cash offer that can help solve some of the concerns a seller night have in accepting a non-cash offer.

Use a cash lender

A cash lender can help you by offering to purchase the home with cash, then turn around the sell the home back to you. There is usually a service fee to use this option.

Have your offer placed as early as you can

Waiting until the last minute to submit an offer might mean that you miss out if the seller decides they do not want to wait any longer. If you submit your offer early, at least your offer is on the table to be considered.

Offer an appraisal gap

One of the biggest reasons that cash tends to win out is when a mortgage is taken out, the house needs to be appraised. A way around the appraisal is to consider getting an appraisal gap that can cover the difference.

Have your buyer consider covering your commission.

This makes the about the seller has to pay out in commission to be less, so they may be encouraged to them to go with your offer. This way they get more money and are happier.

Offer an escalation clause

Regardless of how people may feel about escalation clauses, they are a powerful tool that can get your buyer the strongest offer. This way your buyer can still be the highest offer, but will not go too far above the highest offer already on the table.

Pay the seller’s closing costs

This is a good way to make a seller feel like they’re going to save some money going with your offer. It also benefits the buyer since when they have to pay for the title policy, they get to choose the company. This may only save the seller a few thousand dollars, but the little things add up.

The position you need to take when cash offers are out there is the take away as much of the stress from the seller as you can. This will make you a more viable contender in the bidding war.