Do you know how to make a conventional loan purchase-agreement compete with a cash offer?

The greater East Bay and Oakland real estate market has been a fairly competitive market for buyers lately.  One of the issues that traditional buyers using loans for their home purchases are constantly running into are cash buyers. Cash buyers are enticing to sellers since the seller will not have to worry about a bank getting in the way of the sale due to a multitude of issues which could arise (such as appraisal value or loan requirements changing mid-stream during the purchase).

Here are some methods to better guarantee that an offer on a home which is using a lender for the purchase can better compete with a cash offer:

Make sure that your agent provides your lenders direct contact info to the Listing Agent for the home you are making your offer on at the time the offer is submitted. Make it clear that the lender is happy to speak with them regarding your loan and approval status.

Compose and add a letter from buyer to the seller stating why they want house (focusing on the house and its hot points) and assuring the buyer that you will do all possible to insure a smooth close of escrow.

Write the offer with the shortest contingency time periods possible to add value to the offer via a sense of security to the seller.

If competition from other buyers is strong for the property you are making an offer on, consider doing pre-inspections on the property and coming in with  a zero inspection contingency offer (this type of offer does come with inherent risks and should only be if you are fully educated on the risks involved with this type of strategy). Sellers are extremely attracted to this type of offer since it assures them that the buyer will not be doing further price negotiations with them based on inspection findings.

The ability of your real estate agent build repore and relationship with the agent representing the seller. This can be of extreme help since agents must work closely with one another during the escrow process to make sure all documents required are signed and deadlines agreed to our met.

Making a strong offer financially to help outway the benefit of all-cash (weak offer don't fly with a hot house).  Obviously, the seller is always getting 'All Cash' once the property closes escrow and the bank transfers the money to the seller.  The beauty of the 'All Cash' offer to a sellers is that they do not have to worry about the banks or appraisers getting in the way of the transaction. This type of offer can also close escrow sooner then an offer with a loan attached to the purchase.
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Working with a lending team that is good enough that they can expedite the close of escrow rather then working with a lender that may take longer to perform on the purchase. A local lender will have a better understanding of the market place and depending on the type of loan may have more control over picking the appraiser that helps determine value (this can be a huge asset since it is now possible for an out of area appraiser (who may not be as familiar with the East Bay Neighborhoods) to be assigned to the job of determining your properties value)

The Dave and Carla Higgins team is well versed on these strategies and employs them whenever the opportunity or occasion arises to do so.  If you are interested in learning more about how the Dave and Carla Team can represent you in the purchase of a home as well as hear about our service guarantees, please contact us.