Buying investment property is very often a tougher row to hoe than buying a house to live in. This is especially the case when you’re competing against other cash buyers who may have deeper pockets. Still, you can compete with other cash buyers because a cash offer is not the only thing sellers consider. So if you deploy the right strategies, you can still come out ahead. Take a look, then, at these 5 ways New Jersey investors can compete with other cash buyers.
1. Make Your Best Offer Out of the Gate
Typically, cash buyers are looking for a bargain, and they will use the power of paying cash to negotiate the best deal possible. But if you’re trying to compete with other cash buyers in New Jersey, in a competitive market with multiple offers, your best bet is to make your best offer right upfront.
You may not get a chance to negotiate, so if you don’t make your best offer right out of the gate, you may lose out to other buyers. Of course, you also don’t want to offer too much and wind up overpaying. So make sure to consult your New Jersey agent about what you should offer up front. To find out more, just call 855-966-DEALS.
2. Reduce or Jettison Contingencies
Also, as a New Jersey investor, you can compete with other buyers by going easy on the contingencies. Contingencies are contract conditions that allow you to withdraw your offer without penalty and for some specified reasons, such as problems discovered during the inspection.
If you reduce or remove contingencies, your offer will be more appealing to the seller than all those other offers with several contingencies attached. Just be aware that this tactic carries some risk, so be sure to consult your agent before taking this step.
3. Be Flexible
You can also compete with other cash buyers by simply being flexible. Let the seller be in the driver’s seat when it comes to terms and the timeline. For example, you could let the seller set the closing date sooner or later to best fit with her schedule and needs.
Being accommodating and flexible is pretty easy really. And doing so could make your offer far more attractive.
4. Offer More Earnest Money
If you really do want to compete, then don’t skimp on the earnest money. Offering more earnest money makes you a serious buyer, one who can rise above other buyers who offer less earnest money.
The earnest money typically goes into an escrow account after the purchase agreement is signed. This earnest money tells the seller that you’re serious about buying the property and that you won’t back out. And the more earnest money you put down, the more attractive your offer will be.
Most investors and cash buyers usually don’t want to put down more than the minimum amount of earnest money. It ties up their money that could be used on other simultaneous deals. So more earnest money allows you to compete with cash buyers in New Jersey.
5. Make an As-Is Offer
Often cash buyers buy as-is – but not always. So if you make an as-is offer, you just may be able to compete with other buyers who don’t.
When the seller doesn’t have to make any repairs or reduce the price – things that eat into profit – that’s an attractive offer. So try an as-is offer to stand out from your competition.
Need To Compete With Other Cash Buyers? Be Sure to Consult Your Agent
Perhaps one of the best things you can do as a New Jersey investor trying to compete with other buyers is to let your local real estate agent guide you. Your New Jersey will have extensive knowledge of the local market and can help make competing offers. To find out how our agents can help you compete with those cash buyers, send us a message today at 855-966-DEALS!