Housing prices keep going up and cash buyers keep buying homes before you can even put a bid in. Here are some ideas to help compete against these competitors:
1. First, buy the house with your cash and then take advantage of what lenders call Delayed Financing, by immediately taking on a mortgage after you close. It’s a strong way to get your house fast and then reimburse yourself after closing.
2. If you have a low down-payment, then get preapproved. Have your lender issue you an approval in advance of your offer. It adds strength to your offer since the seller knows you’ve already gotten loan approval.
3. Appraisers may not have caught up to the market. So, plan ahead and have reserves ready in case the property under appraises. If the seller won’t budge on price, you’ll be able to make up the difference in contract price and appraised value.
4. A gift from a family member, use of a 401K or even a second mortgage can be the difference in closing on your new home or losing it to another buyer. Always get a market savvy realtor. They will guide you through a variety of negotiating options when it comes time to compete for your home.
5. Finally, go old school and write a heartfelt letter to the seller. When a seller is deciding on who to go with, pulling on the heart strings can move the seller’s decision in your favor.