We see a lot of articles and situations where first-time homebuyers that are financing a property have to compete with all cash buyers, but what happens if you are a cash buyer and you have to compete with another cash offer?
This is something that were actually seeing a lot of in the Palm Beach County area. These homes, some of them worth millions of dollars, are actually being purchased with all cash and if the seller is receiving numerous cash offers, which one do they go with?
You want your offer to stand out even if it's very similar to a competitor's offer. So how can you do that?
Bill and Lisa were looking at houses in Jupiter Florida. We looked at several homes in popular communities such as the Jupiter Country Club and even some of the newer homes in Sonoma Isles. A few the homes we have looked at were quite unique and because of this, they were selling fast. Bill and Lisa really wanted to get in the game but the new they needed an advantage over other cash offers. Cash is quite a popular mode of purchase around here and with multiple cash offers, they needed to stand out. Here are several ways that we went about making offer stand out.
First up, I made a solid offer. We didn't ask for any inclusion such as personal property in the sale and there were no contingencies on selling a previous home before the purchase of this home finalized. We also were very flexible with the sellers requests and time frames. The seller needed 45 days to close, which we were more than happy to comply with.
Communication is also key. Because I had solid communication with the listing agent I was able to find out what the seller really needed in their home sale. Because of this, we tailored our offer to be as attractive as possible and they also presented the offer in person.
We also added an escalation clause. This stated that we were willing to pay $10,000 over the highest priced offer up to a certain amount. Because we were paying and all-cash we didn't have to worry about an appraisal. This escalation clause only works if the home appraises for the escalated amount. Because we were paying in all cash and Bill and Lisa could easily afford to go higher, they were willing to make that offer and take the risk.
Our offer really stood out because of our willingness to be personal and flexible with the seller. However, we didn't waive the inspection contingency, which a lot of buyers may do in order to get the sale. This may be a tactic if buyers are financing and need to compete with cash offers however, in our case, we didn't need to forfeit our inspection because the rest of the offer seemed very attractive.
We also were diligent and efficient in our time frames. Communication is key and staying in direct communication with the seller and the listing agent, we were able to come to an agreement quickly and effectively. I didn't simply submit an offer and then wait to hear back. I spoke personally with the listing agent, telling them about Bill and Lisa struggle of finding the right home and how much they loved this particular property. This personal inclusion made it easy for the sellers to agree to the cash offer and we were able to close on the home within the sellers time frame.
Again, it comes down to being personal and having an experienced agent that understands the market and how to compete with the sellers in a particular community or subdivision. As Bill and Lisa's guide through the home buying process, we were able to prepare a plan, execute that plan flawlessly with the seller and the listing agent and ends up with a home that they love.
For more information on obtaining a buyers agent for the Palm Beach County real estate market that understands today's trends, the sellers and how to compete, contact my office today.