Being the highest bidder doesn’t always guarantee success in the housing market. This is especially true now that consumers are frequently finding themselves in competition with all-cash buyers. Many sellers are prioritizing timing and efficiency over additional profits and some are making decisions based primarily on emotions and instincts. Following are five reasons why the highest offer may not be enough to help you land the home of your dreams.
1. All-Cash Transactions Are Easy and Fast
When conducting an all cash transaction, there is no need to get an appraisal, deal with third-party lenders, or experience a lengthy closing process. All-cash offers are very appealing to sellers who want to get things done fast. It is important to note, however, that all-cash buyers tend to have a much greater sense of entitlement. Due to this fact, they might make lower than average offers and seek purchasing terms that make sellers leery of working with them. There are also a number of legal protections that both parties are guaranteed to get when mortgage lenders are involved. Thus, finding yourself in competition with an all-cash buyer shouldn’t cause you to back away from a home for sale in Irvine that you really love.
2. Seller Attachment
Sellers may be emotionally attached to their homes, especially if they’ve owned them for a decade or more and raised families in these properties. In these instances, knowing that a beloved home is going to a buyer who intends to cherish and use it in a similar manner could be more important than collecting additional profits. Numerous buyers have been able to beat out higher bidders by submitting personal letters of interest as part of their appeals. When sellers are still emotionally attached, telling them how you’ll love and value the home could mean the difference between having an offer accepted and having it declined.
3. Loan Pre-Approval
It is important for buyers to show that they have the purchasing power to make these transactions go through. Buyers with guaranteed financing are more likely to have their offers accepted than those who lack this assurance, even if their offers are significantly lower than everyone else’s. This makes it extremely important to get your financing in line before you start aggressively pursuing Irvine houses for sale.
4. Too Many Contingencies
Offers that are straightforward and have few contingencies are usually more appealing than those that have the potential to create countless delays. Buyers should always have inspection contingencies in place to protect their interests. When outside funding is required, appraisal and financing contingencies will need to be incorporated as well. Having a pre-approval letter before submitting your offer is a great way to limit the impact of a financing contingency. You can also offer to have the inspection completed soon after escrow is opened in order to show sellers that you’re serious and to keep things moving forward.
4. A Willingness to Be Flexible
Sellers are often trying to offload their old homes and expedite the purchase of their new ones all at once. For these individuals, this can be an incredibly stressful process. Telling sellers that you’re willing and able to move at a pace that feels comfortable for them can make your offer shine. Customizing closing to suit the needs of the seller is one of the easiest ways to best a better-funded buyer.
Working with an experienced real estate agent in Irvine who can guide you through the process and offer suggestions to make your offer standout can sometimes be the difference between getting the house you want and losing it to someone else. Check out our inventory online or give us a call at (714) 454-6304 to schedule an appointment!