You’ve found the perfect starter home in Corona or Orange County, California, and you qualify for a mortgage to pay for it. But as you submit your offer, you find out that you’re up against an all-cash buyer. Before you give up on that home, give it a minute – you might be surprised to find that the seller actually prefers your offer to the cash one.
When it comes to making offers and negotiations, don’t neglect the importance of a reputable real estate agent. They’ll help make sure you understand the properties you’re interested in but will also help you present your case to sellers in the strongest light possible. Cash deals tend to move rapidly, so your agent will help you make sure your financing paperwork is ready to go as quickly as the seller needs.
Work with your agent to help sort out the seller’s motives. If they are just looking for the highest offer, you’ll know based on the feel of the house when you look at it. On the other hand, if they’ve been in the house for decades and it has a personalized look and feel, they may prefer someone who wants to enjoy their home – not worry about someone who wants to change or destroy what they’ve built.
If you’re up against an all-cash buyer, you need to make sure your financing paperwork is in perfect shape. To convince the seller that your financing is set and you are ready to buy, show them any documents that apply to your mortgage, like:
Pre-approval letters
Proof of employment
Positive bank statements
Your credit score
Many agents also recommend writing a letter to the sellers to show them that you are a real person looking for a home to cherish. Tell them what you like about the house, how you envision yourself or your family enjoying it, and you’ll make a compelling case against buyers hiding behind cash offers. For your Corona starter home, tell them about your dreams of children playing on your front lawn, and your plans for making a home there. It never hurts to try.