A buyer may have all the cash he wants to be able to buy a house and may have gotten in touch with the best real estate agent in San-Francisco and may be thinking that this is all he needs to buy a house. While he may have the highest bid for a house, take a look at the top five reasons why you may still outbid him even when you have a lower offer.
You are willing to pay all cash
Even if you have a lower offer than the highest bidder, if you are willing to make cash payment then chances are that the seller might accept your offer. The say cash is king and it holds true especially when buying a house. With a cash only sale, there is no issue with mortgages or lenders and moreover, the escrow also closes much faster in comparison to a mortgage based payment. In addition, the seller also does not have to worry about any appraisal value.
You have a pre-approval letter
Your California best realtor in San-Francisco might have told you the importance of a pre-approval letter. It is a letter that the mortgage lender gives to you confirming that you are financially ready to purchase a house within the price range that has been set and that you have been pre-approved for the loan. Since, mortgages are hard to get in the current situation; a pre-approval letter gives you much leverage compared to other buyers who may not have such a letter. Another buyer may have offered to pay more money for the same house but may not be pre-approved and that is when you stand a better chance of owning the house.
Flexibility over closing time
If you are ready to customize the closing timeline based on the seller’s needs, your offer might end up being accepted than another person’s. Sellers usually aim for a faster closing and if you are willing to do so at the seller’s terms then you have a higher chance. However, there is no need to rush into anything. You must make all necessary inspections before you purchase a house and make such a huge investment. Find out what the seller needs. Make a call depending on whether the seller needs more time or wants to close the deal within a shorter span of time. Many lower offers are accepted owing to this one reason.
A genuine letter to the seller
This depends on the seller though but sometimes this works as well. Often San-Francisco realtors have seen sellers sell houses to buyers who have written a heart-felt letter expressing their desire to buy the house. Sellers who are emotionally attached to the house they are selling need to know that they are giving their house away to someone reliable, who will take as good care of the house as they did. So, if you are lucky then this might help you land the house of your dreams even if you have a lower offer.
Having fewer contingencies
While it is a good thing to be able to negotiate but the lesser contingencies you will include in your offer, the better will be your chances of buying a house. Usually, such contingencies weaken your offer and hence you should have them only if you really think they are necessary. A deal that becomes harder to close will not be entertained by any seller. Ask your real estate agent in San-Francisco to help you with this part.
Do your own researches properly before you make any offer on a house and before proceeding with that offer because this is a very big investment and you do not want to be sorry later.