It’s tough for buyers these days. Not only do they have to compete with other buyers but sometimes those buyers are sitting on a big pile of cash and you happen to be just a regular guy who has to get a loan, what do you do?
Well the reason why sellers choose cash offers most times is because they close faster and with less headaches. So if you are financed there’s a few things you can do to make your offer more competitive.
Number one and this probably goes without saying, is come up in price. Yes buyers often think that they don’t have to be the highest offer because well they’re paying with cash. If you were financed and it’s the house of your dreams then consider going even higher. Figure out what the difference will cost you over 30 years. It may not be that bad per month.
Also remove your appraisal contingency. So if the home appraises for less than the purchase price you are committing to paying the difference out-of-pocket. It’s a little risky but again you have to pay to play.
Third is consider increasing your earnest money deposit. The standard is 3% but there’s nothing saying that you can’t offer more than that. It’ll show the sellers that you mean business.