New York City is already a tough market to buy in, and having to compete with all cash offers just makes it even harder!
But contrary to popular belief, it is actually possible! Here’s how.
One of the reasons why cash is so desirable is because it removes a level of uncertainty from the transaction. The seller doesn’t have to worry about an appraisal, and they don’t have to worry about a loan being declined.
But you can remove those same uncertainties by making your offer non-contingent. You’ll still be able to get financing, but you’re not going to make the deal contingent on you getting that financing in order to proceed with the sale.
Removing the contingency gives the seller the comfort that the deal is still going to move forward even if hiccups are encountered with your financing.
The BIG caveat here is that if the property under appraises or your preferred lender declines to give you the loan, then you’re still obligated to complete the transaction. This makes non-contingent offers very risky.
So be sure to speak with your attorney and mortgage professional before deciding to do this! If it’s feasible, then this is one of the best ways to compete with all cash offers, especially in New York City!
Many all cash buyers expect to get a significant discount on the asking price because they’re offering all cash. They understand that peace of mind has value to a seller.
But if a seller isn’t in a huge rush to sell, you can still win out simply by offering them a really great price.
Yes, it actually is THAT simple.
And your offer could be even more appealing if you combine it with the next thing.
There are two elements to loan approval if you’re buying in a co-op or condo – you and the building. So in addition to having your pre-approval lined up, you could try to work with your mortgage professional to see if it’s possible to get the building approved as well.
This can be a bit tricky if you don’t already have the necessary paperwork. But your agent and mortgage professional can work together to see if they can make it happen.
And here’s something else you might not know – a lot of buildings (especially larger ones) are already on the approved lists for many banks! So as long as you’re qualified for the mortgage you want, this combo could potentially make your offer just as strong as a cash bid.
So now that you know how you can actually compete with all cash offers…
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