Thursday, July 7, 2016

You think you can't beat an all cash offer? You bet you can! Learn how.

 

6 ways you can beat an all cash offer...learn what brickunderground.com  has to suggest...

They say cash is king. So, in theory, anyone who's getting a mortgage to buy an apartment will be out of luck when facing the competition of an all-cash buyer. But in reality, that's just not true. “Non-contingent but seeking financing—that’s the queen,’” says real estate agent Charlie Homet of Halstead Property, alluding to the scenario where a buyer agrees to buy regardless of whether a mortgage can actually be secured. 
 
In fact, says Leonard Steinberg, president of Compass, many wealthy clients who can pay all-cash go the mortgage route. "You'd be surprised to see the high-end apartments that are tied to mortgages in the city," he says.
Shaun Osher, founder of CORE, points out that "at the end of the day, the seller doesn't care where the money's coming from, they care that it'll be at the closing."
Still, there's no denying the allure of a cash offer. And even though the market might be cooling a bit (as recent reports show), most of that is at the super-luxe end of the market, and there are still plenty of all-cash buyers around. So what’s a prospective buyer not flush with cash to do? There are a number of strategies for the financing buyer who wants to be taken seriously as cold hard cash—from financing less, to spending more, to simply being easy to work with. Here are six strategies for competing:

1. Get pre-approved for a mortgage but do without a traditional mortgage contingency

Having a traditional mortgage contingency clause in the contract protects you from losing your down payment—typically around 20 percent—if you or the building aren’t approved by a bank. That's great for you, and not so great for the seller. Which is why the most effective, and perhaps one of the most nerve-wracking, way to compete against all-cash is to waive the mortgage contingency altogether.
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