Special offer

How Can I Compete Against All-Cash Offers?

By
Real Estate Agent with Coldwell Banker Residential Brokerage BRE#01732313

Big MoneyIt’s no secret – there are a lot of all cash buyers in the market.  Some of these buyers are investors who pool their funds, some come from out of the country, but others are average folks who have made decisions about how they will accomplish their home buying goals.

In a hot market like we experienced last year in the Tri Valley (Livermore, Dublin, Pleasanton, Danville, San Ramon) low inventory and plentiful buyers drove the competition up considerably.  Those looking to downsize or move-up had to strategize about the best way to approach their move.

Some decided to sell first, so they would have cash in hand in order to write an attractive offer for their replacement home. Others, liquidated investment funds to make the purchase, selling their primary home after the fact and then reimbursing those funds after close of escrow.  Some get the idea that ALL cash offers are from very wealthy people and offshore investors. While that is true in some cases, it’s not true in all.  Those with a goal and a plan position themselves for the best possible outcome, and that often comes with sacrifice.

Cash is but one variable in an offer to purchase. The others are terms, timeline and contingencies. Understanding the nuances of these other components can also serve to make your offer more attractive to a seller.

Read more about terms, timelines and contingencies.

 

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     I recently wrote an all-cash offer, full price, with a closing date in one week.  No contingencies, no inspections, nothing.  Needless to say, that Buyer bought the house.  BTW, the Buyer was not a rich investor nor a foreign national. .

Feb 25, 2014 11:24 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

The verbial "there is more than one way to skin a cat " may apply great links BTW

Feb 25, 2014 11:46 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

I know that financing can be a hurdle to overcome, but if you know your buyer, financing should not be a deterrant for any home seller over cash. The seller gets no real benefit, other than the transaction may close a little sooner. Price, terms, timeline, and contingencies can actually make much more of a difference in a good vs okay offer.

Feb 25, 2014 01:59 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

It's refreshing to hear that it is more than just the cash offers that are making the buys Karen.

Feb 25, 2014 02:17 PM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

"Those with a goal and a plan position themselves for the best possible outcome." Very true, Karen.

Feb 25, 2014 09:17 PM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Karen - Having a great real estate professional like yourself to help buyers think through the buying process and identify their options to be competitive in a Sellers's market is the first step in buying a home!

Feb 26, 2014 01:00 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Fred, those are nice transactions for the sellers when they do occur.

Charles, I get it. I just don't like the saying ;)

Troy, financed offers are terrific, providing the buyers have been proberly vetted upfront.

Yes Tom, it sure is. Otherwise, it would be very discouraging for buyers.

Thanks Lottie. Good seeing you here!

Laura, I love helping folks talk through their 'what if' scenarios.

 

Feb 26, 2014 01:17 PM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

In my market, the cash buyers are under the impression that if they have cash they can automatically cut the price by 20% or so.  Not so!

Feb 28, 2014 12:17 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Karen  an all cash offer  is a challenge to over come. The key is to have a knowledgeable Realtor who can maneuver the buyers through all the challenges, Endre

Mar 11, 2014 11:53 AM