November 13, 2013 09:55 AM

actvra.in/46NV

Cash Buyer vs. Conventional Buyer

Theres a lot of talk about cash buyers in most all real estate markets today. These buyers have a reputation for plunging in and sneaking homes out from under conventional buyers, merely because the cash buyer does not require a bank mortgage. Regular buyers relying on credit are frequently losing out to an unfortunate environment as they simply have a hard time competing against cash buyers.

Cash buyers dont always have to win; someone buying a property with credit can still compete against cash buyers and win. If the buyer has sufficient credit, little debt, a down payment of 20 percent, and keeps a well-paying job, with cash reserves in addition to the down payment then a conventional buyers should be bullet-proof against a cash buyer.

Here are some tips for competing against a cash buyer:

Make your offer a shoo-in Start with your lender, have them verify youre a well-qualified buyer on your pre-approval letter. And preferably (if youre fine with it, of course) make sure your Realtor or mortgage lender provide financial information about you with your offerThe more the sellers know about you the better chances of buying the home.

The loan and appraisal contingencies: In advances talk with your lender and find out whats the quickest turnaround time for the appraisal & loan approval. Ive have seen the entire process done in 15 days.

Shorten the inspection contingency: Shortening the inspection contingency shows the seller youre a serious buyer. Getting the home inspection right away is a clever move. It can be accomplished within five days of acceptance; sellers like it when the contingencies are out of the way and it enhances your offer any time you truncate the contingencies.

Knowing your limits: As a buyer you have to make yourself shine; especially competing with a cash buyer who intends to rent the home out. It makes sense, and it cant hurt getting a little expressive hoping it attracts them to you. Buyers that work with a dependable local Realtor and have a local mortgage professional well in advance can have the advantage and win over a cash buyer. Your local Realtor will structure your offer to show that youre ready to go and look just as good as ANY cash buyer

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