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Thursday, February 11, 2016

How Can I Compete With Cash Buyers in the Current Melbourne, Florida Housing Market?

Price is really not everything when buying a home.   Still, the highest offer, on the surface, may have some additional appeal to a seller if the prospective buyer is paying cash.

But an offer is more than just price.    It is the whole package including contingencies and conditions.

Some of the more common contingencies include property inspections and financing.   All buyers have (or should have) an inspection contingency.   This is a powerful tool for a buyer's protection. 

When a mortgage is involved there will be a financing contingency which will include an appraisal.  Even cash buyers commonly have an appraisal contingency.

The cleanest offer (least contingencies, quickest closing, greater likelihood of a closing) will usually be the preferred choice as long as it meets the seller's goals.

Let us assume two offers are equally appealing but one is a cash buyer while the other is a mortgage (typically at lest a 45 day closing, if approved.).

Which will a buyer choose?   Most likely the cash buyer will win. 

But, if a buyer has already been pre-approved through the underwriting process then the game just changed!

As a buyer I think there is an increased comfort level with an already stressful process if a buyer knows they have already been pre-approved.

Just because you don't have the cash on hand does not mean you can't shop like a cash buyer!

I just became aware of a Florida mortgage banker who offers a "TBD" loan.  This mortgage loan can even the playing field.   Buyers get fully underwritten conditional approvals before they find the house.  Who says you need 45 days to close your home purchase - even with a mortgage????

I am not a mortgage lender however if you want information on this program I will gladly share the lender with you.  I do not make anything off this referral but do hope you will allow me to assist you when buying your new Melbourne, Florida home.


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