In today’s booming real estate market, you often hear that “cash is king.” True to this, a huge percentage of home buyers, and even sellers opt for all-cash because they are simpler transactions to process. However, do not allow this to discourage you from embarking on your home-buying journey. Just because you are not prepared to make a full cash offer does not mean you cannot have a strong offer and compete in the market. Here is a look at how you can compete and make your offer stand out. Read on to learn more!
Hire a Realtor
Working with an experienced Realtor who will walk you through all your alternatives should be your go-to option. Whether you are in a bidding battle with an all-cash buyer or not, a realtor is quite helpful.
A good realtor like Frisco TX real estate agent Karrie Johnston will walk you through the whole home buying process, not just the first offer, as there is so much more to the deal. There might be counter-offers and contingencies to discuss. You want to find an agent who will fight for you professionally, with your best interests at heart.
Increase Earnest Deposit Amount
As a home buyer, you should make an earnest deposit to the seller, which is held in escrow. This deposit demonstrates your commitment to purchasing the property. This money will go toward your down payment and closing costs.
Buyers often offer 1-3% of the buying price, and the funds are transferred within 3 days of the seller accepting your offer. You can make your offer appear more appealing by increasing the amount of your earnest deposit.
Know the Seller’s Timeline
If you understand the seller’s objectives, you can make your offer more tempting by agreeing to their timeline. Keep your contingencies to a minimum and your closing date in line with their preferences. If the seller requests a rent back, consider also agreeing to it. This can be quite significant if you are up against an all-cash offer.
Offer More for a Low Appraisal
If the home appraisal comes back lower than anticipated, you could distinguish yourself by being ready to cover the disparity in price. Cash buyers are not subject to the same restrictions as mortgage borrowers. If you can fill the gap, the seller may be willing to drop the sale price.
Personalize Your Offer
Including a letter of offer with your offer gives it a more personalized feel. This letter lets you express your appreciation for the house and why it would fit your family well. Be truthful and authentic, and concentrate on what you like about the house rather than what you would change about it. Always express gratitude to the seller for their time and thoughtfulness.
Be Ready to Close as Quickly as Possible
Work with your realtor and attorney to prepare as much closing paperwork as possible ahead of time. When you receive tentative acceptance of an offer, schedule a due diligence inspection with a building inspector. You should also find an insurance agent who can draft a fire and casualty coverage immediately after your offer gets accepted.
Find Homes for Sale in Frisco with Karrie Johnston
The best way to beat cash offers on a home is to relieve the seller of any stress and fears they might have when selling you the home. To help you with this, you should partner with Karrie Johnston. As an experienced realtor, Karrie understands the intricacies of the real estate market in Frisco. Karrie will guide you on everything, from preparing solid bids to helping you find a new home that matches your needs and preferences. Reach out today!