How To Compete With A Cash Buyer in Texas
A cash buyer can be intimidating if that is something you are not ready to do but hoping to purchase a home. Don’t let this deter you from setting out on your home-buying journey. Just because you are not ready to give a full cash offer, doesn't mean you can't have a great offer and compete in the market. Let’s look at how you can compete and get your offer noticed.
How To Compete With A Cash Buyer
You want to be working with a knowledgeable Realtor who will guide you through all of your options. This will be beneficial to you whether you are in a bidding war with an all-cash buyer or not. You want the right realtor for the entire home-buying process, not just the initial offer because there is so much more to the transaction. There can be counteroffers and contingencies to negotiate. You want to hire an agent who will professionally battle it out for you,
Increase Earnest Deposit Amount
Your earnest money deposit is made to the seller and held in escrow. This shows your good faith in purchasing the property. This money is applied to your down payment and closing costs. Typically, buyers offer 1-3% of the purchase price and the money is submitted within 3 days of the seller accepting your offer. You can make your offer look better by increasing your earnest deposit amount.
The quicker you get the inspection taken care of the sooner you know what needs to be addressed concerning the home. This speeds up the process abs helps you consider what you need to fix or what you need to request for repairs from the seller.
If you know what the seller's goals are then you can make your offer look appealing by agreeing to their timeline. Keep your contingencies short and your closing date in alignment with their wishes. If the seller needs a rent back, consider agreeing to this too. That can be a big deal if you are competing with an all-cash offer.
Offer Extra For A Low Appraisal
If for some reason the home appraisal comes back lower than expected, you could stand out by being willing to cover the gap. A cash buyer will not have the limitations as those that are mortgage borrowers. If you can make up the difference, then it is possible the seller could lower the sale price.
Writing an offer letter that goes with your offer adds a personal touch. This gives you the ability to acknowledge what you love about the home and why it would be a good fit for your family. Be honest and genuine and focus on what you love about the home, not what you would do to it. Always thank the seller for their time and consideration.
You always want to come in with the best offer you can afford. Keep in mind that you need to be flexible and be ready to negotiate respectfully. Using the advice above you can stand out among other offers, even if they are all-cash offers. If you have any questions or are ready to get started looking for your Frisco, TX home, contact me!
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NTREIS data last updated May 28, 2023.
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