5 Ways to Stick Out Among Cash Homebuyers
Are you up against cash homebuyers for your dream home, but you don’t have as much cash to bid on the home? Have no fear! Often times you can be just as valuable as an all-cash buyer if you have good credit, have a 20 percent down payment and have little debt, among other factors.
Here’s are five ways you can stick out among cash homebuyers.
1. Strengthen your offer by being honest about your finances.
Bidding on a home against cash homebuyers is a whole different ball game when it comes to the homebuying process. Instead of offering up the typical pre-approval letter on its own, make your offer shine by providing your bank statements, credit report and any other additional financial information that can strengthen your offer.
2. Get the mortgage going sooner than later.
Depending on your circumstances, you can obtain a copy of the preliminary title report or complete a condo questionnaire ahead of time. Provide these documents to your lender in order to speed up the mortgage process, then notify the seller that you have gone out of your way to complete these steps. In addition, see if your lender is able to get your loan approved sooner.
3. Take care of your appraisal and inspection quickly.
Though not always possible if your lender is a larger bank, you might be able to order your appraisal before the offer has even been written. This is much more likely if you’re getting your mortgage through smaller banks. Once your offer is accepted, take the initiative of having your inspection done within the same week. Getting these crucial steps done quickly, yet precisely, will help you gain favor in the seller’s eyes.
4. Outbid the cash buyer.
While the thought of outbidding cash homebuyers seems nerve-wracking, when it comes down to it, paying 5 percent more could really mean just paying $20 more per month for your mortgage. Outbidding of course makes your chances of getting the home greater because the all-cash buyer is not always willing to shell out more funds to exceed your offer. Of course, before you put down extra cash, assess the home and see if you envision yourself living there for quite some time to make it worth your investment.
5. Get personal with the seller.
Writing a personal letter can be advantageous, especially if the cash buyer is an investor who plans to be more at arm’s length from the home and use it as a rental or house flipping project. Often times, a personal letter to the seller will get you ahead in the game since they’re interested in the future of the home and its new owner. Include information such as who you are, if you plan to start a family, why you love the home and other hopes you have as an owner.