How to compete with all cash offers?

[Dana Kelley]

I have lost 2 houses to all cash offers. How can a financed offer (already pre approved) compete with an all cash offer? Or can it ever?

[Doug Matthews]

Cash is king. Problems have a higher likelyhood to arise with finance deals, and cash deals can often close quicker. When selling, I always prioritize cash offers unless the financed buyer sweetens the deal. Examples can be no mortgage contingency, higher offer price, non-refundable portion of the deposit to cover additional time value of deal closer. Submit your deals "as is" with a short diligence period etc.

Think about it from the sellers side, and then try to overcome their resistance with a sweetener that works. If they have a mortgage, the extra 15 days to close will cost them money. If you can't get financed, the time lost waiting on your approval costs them money. If you can overcome these, many sellers may go with it.

That said, agents will often push the seller to the cash offer too. They want to get paid :), and know those deals are more likely to close.