To close on a home today, you need more than cash. Today’s residential real estate market is highly competitive. Because of this, people lose out on “dream homes” all the time. If you want to walk away with the house you really want for a great price, there are some tips to help.
It is no longer a buyer’s market and with plenty of cash along with excellent financing options, an entire new group of home buyers has come on scene. Of course, for prime locations, competition is even more fierce. For instance, in Los Angeles, California, Miami, Florida, and New York City, New York, close to 50 percent of buyers close transactions with cash.
In addition, there is a lot of competition from foreign buyers. According a new report issued by Knight Frank, there was a 40 percent increase last year in the number of foreign buyers interested in Miami. Of those, 81 percent were cash buyers. For you, the competition is tight but the good news is that there are ways you can gain an advantage.
Move Quickly – Once you locate a house of interest, time is everything. The reason cash buyers get ahead is that financial contingencies are avoided. However, getting preapproved for a home loan and scheduling a short inspection could allow you to beat out the competition. The bottom line is that while cash is a huge perk to a seller, getting the home sold quickly is more important.
Above Asking Price – Everyone wants a bargain, which is understandable, but if you have your heart set on a particular home then you need to come in with an offer that is above the current asking price. While other potential buyers negotiate back and forth for a lower sales price, you have the opportunity to swoop in and show the seller you are a serious buyer.
Build Rapport – For many sellers, moving from a home is a very emotional experience. After all, some sellers have been in the home for a long time and raised an entire family there. If you can build rapport and create an emotional connection with the seller, you have a huge advantage over other buyers.
Flexibility – It will also be to your advantage to be as flexible as you possible can when it comes to terms and closing. The more you can accommodate the needs of the seller the better. Again, being willing to work around dates and circumstances will go much further than cash to a lot of sellers.