Don't Let Cash Homebuyers Beat You Out on a Home

It's important to know how to compete with cash buyers when buying your first home. Undoubtedly, buying a house is an exciting time in life, but it doesn't come without pitfalls. One of the most significant challenges first-time homebuyers face is competing with cash buyers in the thriving real estate market. 

Luckily, there are ways around this issue! Let's look at how to compete with cash buyers and get your new home without all the stress and hassle. 

Waive or Shorten Contingencies

A contingency is a condition both parties must meet before the contract becomes legally binding. When buying your first house, you may want to consider waiving or shortening some contingencies rather than agreeing to all of them upfront. For example, if repairs are necessary on the property and left unfinished, the seller's timeline passes. Getting caught on the bogus end of a contingency is not desirable.

Some of the most common contingencies in a purchase contract are that the property must be free from all liens, encumbrances, and easements. This situation always means getting an attorney to do a title search on the parcel before signing any contracts with the seller. 

Get a Mortgage Pre Approval

Getting a preapproval for the mortgage takes the guesswork out of buying a house. You have a better idea of how much you can afford. 

If your pre approval expires before the closing, then it's possible that another offer could come in at the last minute. When and if this happens, you could lose your chance to own the home.

You should be able to get a mortgage pre approval if you have good credit.

Make Offers Sight Unseen

A few new home builders will allow you to make offers sight unseen. You can download floor plans before making your offer, but the drawback is that customizations are not allowed. If you've set your mind on something custom, that could be a deal breaker.

If you're having trouble competing with cash buyers, then it's time to consider making offers sight unseen. It allows you to quickly create an offer without actually seeing what's inside a home before buying it. You can download floor plans and look at the pictures or take a 3D virtual tour. 

Consider Condos or Duplexes

You should consider condos or duplexes if these options suit your needs better than a single-family house. Condos and duplexes usually cost less. You might be able to make your cash stretch farther because of this fact. It's possible to get a newer condo at a price similar to an older house, for example.

The monthly mortgage expense may be less, and it doesn't have the exact upkeep costs. You can cover additional ground doing it this way. If you're having trouble competing with cash buyers on houses, going this route may be the next best thing.

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