I am going to give you insider knowledge and a great strategy to win against cash offers.
Abraham Lincoln once said, “Give me six hours to chop down a tree and I’ll spend the first four sharpening the axe.”
It is extremely important to have a plan of action when buying a home. Let me give you a recommendation for the best plan of action:
1. Be prepared – being pre-qualified or pre-approved is not enough. You need for the bank to have already reviewed your income, assets and credit. You want any potential issues addressed ahead of time so, when you’re under agreement, you are not chasing any other documentation.
2. Price – on average, you will have to pay 2-3% higher than the cash buyer. You need to consult with your real estate agent to determine the price of the home. The seller wants to get the highest price possible, so make your highest offer first.
3. Present a clean offer – don’t sweat the small stuff. Your concern should be big things that will affect you living in the home.
4. Be flexible – give the seller the option of when they want to close.
5. Get personal – have your agent present the listing directly to the listing agent with a personal letter on how much you really like the house. A letter can create an emotional response because, even though a real estate is business, it’s also personal.
If you have any other mortgage or real estate questions, please subscribe to my YouTube channel.