If you’ve got your eye on a North Texas home, you’re probably like most people – you don’t have endless cash lying around. What if someone who does have substantial cash comes along, wanting to take that dream home out from under you? Can you compete? Absolutely! As trusted Flower Mound real estate professionals, we have a few tips to help you play the game when you’re really in love with a home.
Anyone knows that in many situations, money talks. This is particularly true following the 2008 stock market crash, but how can you compete with all-cash offers? While it’s a bit tricky in a seller’s market, we suggest:
Consider an offer that’s a little higher. While this doesn’t guarantee a sale, it could help you secure that dream home. Cash buyers are often investors, which means they want to make a profit by buying a home low and selling higher. Up your offer just a bit, but be sure to consult with your agent to ensure the price you’re willing to pay is justified after analyzing comparable sales.
Make your best offer first. When a cash buyer is in the mix, you may not have the opportunity to negotiate price. Submit your best offer upfront, only after reviewing the current appreciation rate for the market. Keep in mind that while you may be paying a bit more now, you may be able to avoid being outbid and eventually paying substantially more than you intended for the property in the long run.
Make an offer on the home “as is.” Oftentimes, home inspections reveal problems that may not be readily apparent. In other cases, it could be that the home needs to be painted, has a few minor plumbing issues, etc. Sellers are very attracted to “as is” offers, which means they won’t have to shell out money to make repairs.
Let your genuine interest and love in the home shine through. It’s a good idea to touch a seller’s heart by writing a letter that describes how much you love the home, how you can envision your young children playing in the playroom or yard, why the kitchen is ideal for your family. While it may or may not be effective, it takes just a little time and could be worth your effort to write a genuine, heartfelt letter that tugs at the seller’s emotions a bit.
There are several things you can do when you find that perfect Dallas-area home only to learn a competitor may have a potential buyer with lots of cash to spend. Be flexible when it comes to the closing or move-out date, know the specific needs of the seller and have your offer and pre-approval letter ready with every “t” crossed and “i” dotted, offer contact with your lender so the seller is assured you can complete the purchase, etc.
At Team Nelson, our Flower Mound real estate professionals know how competitive the housing market is in North Texas today. Let us help you secure the home of your dreams, even when someone else may have cash in hand!