All-cash offers of homes for sale in California are becoming a popular activity for out-of-state buyers and property investors looking for a great deal. If you’re on the market looking to buy a home in California, bear in mind that you might need to dabble in a good dose of bidding warfare.
Like a carrot being dangled in front of a carthorse as an incentive to move forward, cash offers are usually designed in a similar fashion. This means that sellers should expect to see low offers or costly demanded extras from buyers who offer cash. Despite the perks of a faster closing, sellers need to keep in mind the cash loss of accepting cash offers.
If you’re looking to purchase property from someone who’s looking to sell their home to a cash buyer, here are the 4 things you need to keep in mind in order to compete with them:
1. Include a preapproval letter. It’s important to get your financial documents organized by finding yourself a mortgage lender to get preapproved. Additionally, a note from your lender stating that you’re a well-qualified buyer can go a long way.
2. Work with a fast-moving lender. Average closing times vary significantly from lender to lender. Choosing one known for fast transactions shows sellers that you’re willing to move at their pace. Get in touch if you’d like a referral to a trusted lender.
3. Offer more earnest money or a bigger down payment. More money down means you’re serious about purchasing their home, which gives sellers more confidence in your offer.
4. Make an appropriate offer. We’ll discuss local comps to assess the home’s value, allowing you to make a solid bid right off the bat. Low offers are likely to be dismissed without a second glance
Are you planning to purchase a new home soon? Get in touch today to discuss the right strategy for your home search.