How to compete with a cash buyer in today’s home search.  I buy houses for cash and if you are a home buyer I know it could be frustrating competing against cash buyers like myself.

Well let me tell you a little secret its really no competition if you are going after the right type of properties you should get your offer accepted within 1 out of 5 offers submitted.

Real estate investors or cash buyers as some call us, we target certain types of properties, I buy houses that are at a discount or below market value in order for me to make a profit,  It doesn’t matter if its to buy and resell or to buy and hold the property as a rental.    Cash Buyers Don’t bid on homes unless there is equity in the house, which means the home is below fair market value.  In situations like this, is where you will have competition from a cash buyer.

If you are looking for these types of properties then bid on HUD homes which can be found on the HUD STORE.   at Http://hudhomestore.com. or Fannie Mae properties. These types of homes have what we call an owner occupied period.  During this time only buyers who will occupy the home can bid.

Now when you do find a home that you want to make an offer on.  You need to have a savvy Real Estate Agent one who will go above and beyond to try and get you that dream home you want because most times you only get one shot at putting in a good offer.

Second you must be ready to purchase that home, what I mean by that is make sure that you have your per-approved mortgage letter ready to submit with your offer.  Make sure you have cash reserved for closing cost and down payment.

If you are looking for homes that are on the market and are Fair Market Value then cash buyers do not want them types of homes.  The rest is up to you by making sure your offer is strong and you can close within 30-45days.

Also make sure your agent include a financial statement or fact sheet.  This is a document which tells the seller how strong you are with your financial situation.  Letting the seller know this information will greatly increase the chances of your offer being excepted.

Example: We buy and sell houses and I’m Maryland real estate agent.  So we put a home on the market in bowie Maryland and received a few offers within the first 7 days.  It was a multiple offer listing and we ask all the buyers to come back with there best and final offer.

One buyer’s initial offer was $1000 over asking price but his pre-approval letter was $6,000 short of the listing price.  These buyers a husband and wife team also had no final sheet and they where asking for $12,000 in sellers help.   To me that’s not a strong offer as a seller who wants to sell my house.  I want to pick the best buyer someone who i know can close.  The worst thing I want is to tie up my property for 45 days and not have the buyer able to qualify for his/her mortgage and the deal doesn’t go through.   Its not always the highest offer that gets the house, most times its the strongest offer.  Also include some background on yourself as a buyer where you from etc if you are dealing with personal owners as 0pposed to a bank.

Personal owners have emotions and feelings banks don’t care they just want the best buyers for the most money.

We buy houses in Maryland and our competition are other cash buyers who are bidding on the same properties on the mls.  We rarely buy houses off the mls because of this competition reason.  Most home owners call us directly at 301-660-3289 or just come to our website at http://housebuyingnetwork.info/cash.

 

Tagged with:

Filed under: cash home buyers

Like this post? Subscribe to my RSS feed and get loads more!