Negotiating during the home buying process can be messy work, which is why it pays off to be well prepared. While there are many areas to negotiate during the home sale, most buyers are quickly discouraged when they hear of an all-cash offer against their own. Is it possible to beat out an all-cash offer?
All-cash offers seem to be what home seller’s dreams are made of, and absolute nightmares for the other wanna-be buyers. These offers are enticing for sellers because they allow for a faster closing and a higher likelihood of sales success. Ultimately, these financial benefits or the speed of the process may not be all that sellers are looking for. To best negotiate against an all-cash offer, buyers need to understand what is most important to the homeowners.
Be Flexible on Terms
Knowing what is important to the seller allows you to be flexible on your terms to position your offer in the best light. If a faster close will help the seller out, make it known that you’re able to do so. Offer to pay all closing costs so this is one less area they have to worry about.
Submit Your Best Offer First
Competing with an all-cash offer is not the time to play hardball with the seller. Send in your best, even final, offer the first time around. Let the seller know you’re serious about the property and that it reflects in your proposed purchase price.
Remove or Shorten the Inspection Contingency
The inspection contingency allows the buyer 17 days (typically) to decide if their offer to purchase the property still stands after an inspection has been completed. To make your offer more attractive to the seller, you can either decide to purchase the property “as is” (by stating this prior to the inspection) or shorten the window to 3-5 days after the inspection has been completed. It’s a great way to demonstrate the sincerity of the offer to the seller.
Eliminate the Sale and Settlement Contingency
This contingency states the sale of the home is dependent upon the selling of the current home of the buyer. If you’re able to eliminate this contingency, this will significantly help your offer! The sellers won’t have to worry about the sale of their home falling through. However, this can only be done if you, as the buyer, have talked and received the “go” from your lender.