Competing with cash offers part 1

Competing With Cash Offers Part !
          By Ron Benning, Broker

One of the most common complaints I get from my investor clients is that they are tired of getting beat out by other offers or cash offers. This is part 1 of a 4 part series on what you can do to write a more competitive offer.

Eliminating uncertainty is the most important way to elevate your offer in the eyes of the seller.

In this article we are going to focus on the loan contingency. Sellers like cash offers because there are no loan or appraisal contingencies. This means there is more certainty 21 days earlier than with a financed offer. Sellers will often accept a cash offer that is thousands below your financed offer.

So what can you do to enhance your offer against cash offers or other financed offers? Eliminate the loan contingency! By getting fully approved for your loan there will be no need for a loan contingency and this will make your offer much more attractive to the seller.

Keep the in mind you still have all your other contingencies to protect you and you cannot lose your deposit if you change your mind unless all contingencies are removed.

We have a great lender who can help you with this. Once your loan is approved we can write a much stronger offer and send a loan approval letter with your offer. The added risk to you is very little, but the reward can be great. Ask us about this when we talk and we can get the ball rolling on your approval and start to write more competitive offers for you.

I can be reached at 916 730-3846 with additional questions.

Ron Benning

Would you like to buy some Cherries? This simple question became the starting point for Ron Benning’s career in sales. He was only eight years old and was trying to earn enough money to buy a G.I. Joe. His parents wanted him to learn the value of a dollar & decided to have him save his own money to buy it. Since they lived near several cherry orchards, Ron quickly put two and two together. By going door-to-door and selling the cherries, he earned more than enough money to purchase the toy on the very first day. People that know Ron will often joke that he was born to succeed because he had a tremendous work ethic. But this story is more than just a cute anecdote from his childhood. It’s a lesson in the value of a hard day’s work. Ron embarked on a career in real estate at the age of 21. After four years in the industry, he opened up his own real estate firm. Ron grew his company to 95 agents and two offices before realizing that working with clients is what he enjoyed the most. Now, 30 years after his first business venture (selling cherries), Ron states, "I am finally doing what I was meant to do... Helping local families to realize their real estate dreams.

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