Buying investment property is very often more difficult than buying a house to live in, and is especially the case when you’re competing against other cash buyers who may have deeper pockets.
Still, you can compete with other cash buyers because a cash offer is not the only thing that sellers consider when evaluating an offer. If you deploy the right strategies, you can still come out ahead. Here are 5 ways Boston investors can compete with other cash buyers.
1. Make Your Best Offer Right Out of the Gate
Typically, cash buyers are looking for a bargain, and they will use the power of paying cash to negotiate the best deal possible. But if you’re trying to compete with other cash buyers in Boston, in a competitive market with multiple offers like we’re seeing these days, your best bet is to make your best offer at the onset.
You may not get a chance to negotiate, so if you don’t make your best offer right out of the gate, you may lose out to other buyers. Of course, you also don’t want to offer too much and wind up overpaying. So make sure to consult us at NextHome Titletown Real Estate about current market conditions and what you should offer up front. To find out more, just call (617) 657-9811.
2. Reduce or Eliminate Contingencies
Also, as a Boston investor, you can compete with other buyers by relaxing the contingencies that you add to your offer. Contingencies are contract conditions that allow you to withdraw your offer without penalty and for some specified reasons, such as problems discovered during the inspection.
If you reduce or remove contingencies, your offer will be more appealing to the seller than all those other offers with several contingencies attached. Just be aware that this tactic carries risk for you, so be sure to consult your agent before taking this step.
3. Be Flexible
You can also compete with other cash buyers by simply being flexible. Let the seller be in the driver’s seat when it comes to terms and the timeline. For example, you could let the seller set the closing date sooner or later to best fit with her schedule and needs. Do they need to close on this property in order to use the funds for another purchase that they are making? Or, will they need to rent the place back from you after closing as they seek their next home?
Being accommodating and flexible is pretty easy really. And doing so could make your offer far more attractive.
4. Offer a Higher Deposit with your P&S
If you really do want to compete, then don’t skimp on the deposit. Offering more earnest money makes you a serious buyer, one who can rise above other buyers who offers a lower deposit or down payment.
The earnest money typically goes into an escrow account after the purchase and sale agreement is signed. This earnest money tells the seller that you’re serious about buying the property and that you won’t back out. And the more earnest money you put down, the more attractive your offer will be.
Most investors and cash buyers usually don’t want to put down more than the minimum amount of earnest money. It ties up their money that could be used on other simultaneous deals. So more earnest money makes you a more serious buyer and allows you to compete with cash buyers in Boston.
5. Make an As-Is Offer
Often cash buyers buy as-is. So if you make an as-is offer, you just may be able to compete with other buyers who don’t.
When the seller doesn’t have to make any repairs or reduce the price – things that eat into profit – that’s an attractive offer. So try an as-is offer to stand out from your competition.
Need To Compete With Other Cash Buyers? Our Agents at NextHome Titletown Real Estate Can Help You Strategize!
Perhaps one of the best things you can do as a Boston investor trying to compete with other buyers is to let your local real estate agent guide you. At NextHome Titletown Real Estate, we have extensive knowledge of the local market and can help make competing offers. To find out how our agents can help you compete with those cash buyers, send us a message today at (617) 657-9811!
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