Competing with Cash BuyersNov 1, 2019
Cash offers, multiple offers, agoura real estate, calabasas real estate, lender financing, loan-to-value ratio, clean offers
The real estate market is sizzling. Woe the customer who needs financing to buy a home, who has to compete with cash buyers.
If sellers had a heart and wanted to give equal opportunity to someone who is actually going to live in the property, versus a cash investor, things would not look so bleak for buyers who need financing. Not all cash buyers are investors, yet they are often able to negotiate a price discount. There is a downside to an increase in tenant occupied homes in a given neighborhood. Government owned properties are, at least initially, offered exclusively to buyer’s who intend to live in the home. Yet sellers whose properties are non-conforming may not have a choice. Non-permitted additions and upgrades may render their properties unfriendly so far as lenders are concerned.
So what can a buyer do? They can write “clean” offers.
Forget contingencies to sell another home – that is so 2011 – buyer need to sell their current home first and move twice if necessary.
That’s for starters. It helps for a buyer to work with an agent who has years of experience who can best represent their strengths. I am always amazed when I see offers without a cover letter written by the buyer’s agent. An agent who has previously sold in the neighborhood where the property is located can project confidence about the price the buyer is offering in relation to the comparable sales. Happy hunting!