It may seem like cash buyers have an advantage in the real estate market. However, you can compete with cash buyers effectively by using some simple strategies to your advantage. While sellers may at first be attracted to accepting an offer of cold, hard cash for their home, they may still be swayed to your favor if you can guarantee that the transaction will not fail or that you will back out of your offer. To provide this reassurance, you should have certain qualifications to your credit.
Cash buyers often cannot guarantee that they will follow through with the sale because they lack the backing of a mortgage lender. If you can secure a single loan with a reputable mortgage lender, you present yourself as an interested buyer who has the backing of an established lender. You should also, of course, have solid credit and be able to put down the standard 20 percent on the price of the home. Having these home buying advantages ready to present to the seller shows that you can follow through with the sale with the money needed intact.
You can also beat out cash buyers by asking about specifics that would prompt the seller to choose you as the buyer. If the seller needs to move out by a certain date, you should be ready to close and move in before that date. You also should give the seller your side of the story, demonstrating precisely why you want to buy the house.
