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cash competitors

We are first time home buyers looking for about 150k properties in florida. Made two offers so far just to be beated by cash buyers each time. Now we started looking for homes in 200k price range. Do we stand any chance of getting our offer accepted? I.e. is there less competition in higher price range from cash buyers or should we just stop looking for homes until we save enough cash ourselves in a few years? Is it a waste of time to look for homes when one does not have cash?
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September 01 2013 - US
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I represent many buyers in a market that has lots of competition and a lot of cash offers, some $1 million +.  I often tell people that my job as a buyers agent is to sell my buyers to the seller, the house sells itself.  When possible, I try to build a rapport with the listing agent so they know I'm on top of it and I'm going to make their job easy.  I ask to present the offer in person to the seller and if I can't, then I at least meet with the listing agent in person.  This is especially helpful when my clients have a loan because I can tell the agent in person how qualified they are and encourage them to call the lender.  Last but not least, I always encourage my clients to write a letter to the seller about why their home is perfect for my buyer and include pictures (kids, puppies, or wedding photos are best).  Selling homes is an emotional process and I want my offer to be more than a contract that's black and white.  

Having a clean offer with few to no contingencies and all the necessary disclosures signed is definitely key but I can't stress enough how setting yourself apart from the rest will make your offer stand out!
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September 18 2013
"CASH IS KING"! Having said that, it in no way should deter you from making an offer and getting one accepted!! I have advised my clients on numerous occasions to go with no cash offers because the others had more credibility in other aspects of the terms!! There might be less competition in higher price points ($500K+),but you'd be surprised!! (In Silicon Valley people offer up to a million in cash)Points to remember: 1) Get a pre-approval letter from a major bank. 2) Try to put more down! 3) Try to keep the contingencies at the minimum number of days! 4) Let the agent know he is free to call the lender. 5) Put a higher (EMD) initial deposit....
Good Luck!!
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September 18 2013

Mortgage is as good as Cash to the seller.  As long as you could proved to the buyer that you are qualified borrower. and show the seller you are bank pre-approved mortgage letter. Offering price is the key..

good luck

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September 18 2013
I would think there would be a little less competition in the 200K range, typically here we will advise on a larger earnest money and that will sometimes help.  Good luck!
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September 18 2013
In addition to the other responses, one thing that I would add is to have your lender call the listing agent to let them know that you guys are solid buyers, I had a lender I was working with for one of my clients do this and I believe it was just another item that helped seal the deal in a market where there are a lot of cash buyers.  
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September 18 2013
The market has turned hot and I am seeing a lot of cash offers come across the table, since you know you may be competing with cash buyers make sure you have little to no contingencies on your offer also have a pre approval letter where the lender has actually looked over your credit and and your financial documents not just a pre qual letter.

I just recently closed on a listing and I can tell you the moving factor for my sellers was an offer that included a letter from a 1 st time home buyer- my sellers wanted this particular  buyer to have their home.

I hope this helps!
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September 18 2013
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It is possible to buy with cash competition, if you recognize two major points:  the seller is looking at his/her bottom line and the seller wants the closing to go easily/smoothly.

The less contingencies you have (esp avoid asking for help with closing costs) and the better the price, the more likely you'll win the bid.    Of course, you need to submit the pre-approval letter with your offer.
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September 01 2013
Cash offers are appealing to sellers, but I don't let mine ignore the big picture. When you walk away from a closing, the money in the seller's pocket is the same whether it was a financed or cash purchase. Are your offers strong enough? You might have to offer a bit more to compete with cash buyers. Make sure your Realtor sends a prequalification letter with the offer. Some buyers personalize their offers with a cover letter. "My wife and I have been married 7 years and have two great kids. She's a school teacher and I'm a computer engineer. We fell in love with your home and can picture wonderful family times there. Etc." Good luck!
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September 01 2013
 
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