Competing With Cash Offers Part !
By Ron Benning, Broker
One of the most common complaints I get from my investor clients is that they are tired of getting beat out by other offers or cash offers. This is part 1 of a 4 part series on what you can do to write a more competitive offer.
Eliminating uncertainty is the most important way to elevate your offer in the eyes of the seller.
In this article we are going to focus on the loan contingency. Sellers like cash offers because there are no loan or appraisal contingencies. This means there is more certainty 21 days earlier than with a financed offer. Sellers will often accept a cash offer that is thousands below your financed offer.
So what can you do to enhance your offer against cash offers or other financed offers? Eliminate the loan contingency! By getting fully approved for your loan there will be no need for a loan contingency and this will make your offer much more attractive to the seller.
Keep the in mind you still have all your other contingencies to protect you and you cannot lose your deposit if you change your mind unless all contingencies are removed.
We have a great lender who can help you with this. Once your loan is approved we can write a much stronger offer and send a loan approval letter with your offer. The added risk to you is very little, but the reward can be great. Ask us about this when we talk and we can get the ball rolling on your approval and start to write more competitive offers for you.
I can be reached at 916 730-3846 with additional questions.