How To Compete With Cash Offers

This real estate market is unlike any other. Inventory is at an all-time low. Prices are at an all-time high. That’s great if you’re a seller. But it can also bring about its own unique set of issues. Issues that are turning into stumbling blocks for everyone; no matter which side of transaction you find yourself on.

This time last year Las Vegas had approximately 9,000 active listings. In November 2021 we had approximately 4,000! That’s more than a 50% decrease. Buyers in this market must make extremely competitive offers. Most sellers receive multiple offers. This results in the confidence that at least one of those offers will make it to the finish line. While buyers are experiencing fatigue from placing offer, after offer, only to be rejected time and time again. Most of this fatigue comes from having to bid well over the asking. And in most cases, whoever bids the highest wins.

This market is prime for investors who can easily place the highest offer. And usually it’s a cash offer. And what seller can resist a cash offer? First, of all its cash. Secondly, there’s no appraisal requirement. And with no appraisal, there’s no stress over an appraisal gap and the headaches and stress that come with it. Cash offers close quicker too. But there can be some caveats.

A few months ago, some investors were placing EMD (earnest money deposit) on several homes simultaneously. In the process, they tied up those homes and took them off the market for a period of time. Problems started to arise as they moved forward on some but cancelled others. As a result, many sellers found themselves caught up in a contingency crisis. This is not normally the case but just a quirky circumstance of this unusual market

Receiving a cash offer can be a wonderful experience for a seller and most go off without a hitch. And if you’re a buyer who can make a cash offer, the world is your oyster. But how do you do that? For most, coming up with the down payment and closing costs is enough of a challenge. Paying all cash is out of the question; unless you have a rich relative. That is until now! There is a new finance option that will allow buyers to make cash offers. Think of it as a buy now and finance later program. And they didn’t forget about the unique issues you sellers can face! For you, they will remove the contingency allowing you to move into your next home, without worrying about selling your current home. Think of it as a trade in program. It’s innovative and has leveled the playing field.

If you would like more details and see how this could apply to you, please click here for a confidential consultation Let’s make your next offer, the winning offer!!