Creative strategy to beat cash only offers

[Lauren Seeley]

I am interested in buying a house to live in for a while until we rent out down the road however we are up against several investors with cash only offers (we are only planning to put ~20%) down. How can I put an offer that’s competitive? Someone told me about potentially putting an offer that’s higher but with a sellers credit we can use y buy down our loan. Is that an option? Other strategies are welcome!

[Bill B.]

How does offering more and then getting a credit help the seller or make them want to choose you? You’re adding complexity hr chance of appraisal failure. I think thsi makes your offer weaker  

Escalation clauses won’t help you.  Let’s say you escalate to best offer plus $1,000. If that other offer is cash. You’re going to lose every time. 

The easiest answer is show you’re serious. Make your Ernest deposit 5-10% of the purchase price with 5% going hard in 10 days or less after your inspection period is over. 

With a loan you’re asking the seller to take their property off the market for 30-45 days or more with the real possibility that your lender will change terms, the property won’t appraise, or your financial situation will change. How much more would you want as a seller to take that risk? 5% SHOULD be enough, assuming this is as least a $400k property.