Fan Mail Request: Competing Against Cash Offers

10/29/24 • 47 min

1 Listener

How can anyone Compete with a Cash offer?

1. Understanding different types of "cash offers" - not always literal cash, can be from hard money loans, lines of credit, 1031 exchanges, etc.

2. Tips for making a competitive offer as a financed buyer:

Submit offers quickly, with a short timeline (e.g., 24-hour response)

Minimize contingencies and inspection periods

Offer higher than list price but ask for seller credits to cover closing costs

Work with a lender who can close quickly (e.g., 2 weeks)

3. Exploring alternative financing options to compete with cash buyers:

Cash buyer programs that provide upfront cash, then you refinance

Bridge loans using equity in your current home

4. Importance of being prepared as a financed buyer:

Get pre-approved, have documents ready

If selling a home, make sure it's ready to list quickly

Understand debt-to-income ratios and loan program limits

5. Strengthening a contingent offer by putting down earnest money, shortening timelines, etc.

6. Recognizing that even with financing, you can be competitive by understanding the market and working closely with your agent and lender.

Mikal Mele
Loan Officer & Mortgage Advisor
NMLS 963197

Casey Carpenter
Loan Officer & Mortgage Advisor
NMLS 1458123

Addy Nett
Loan Officer & Mortgage Advisor
NMLS 1542184

Mortgage Express, LLC NMLS ID 40831 | Equal Housing Lender

Not a commitment to lock or lend. Terms and conditions apply. Not all applicants will qualify. Licensed in OR/WA/CA/AZ/ID with licensing in California by the Department of Financial Protection and Innovation (DFPI) under the Residential Mortgage Act. Questions and concerns may be directed to our Corporate Office or [email protected]. Visit www.nmlsconsumeraccess.org for more information.

Send us a text

How can anyone Compete with a Cash offer?

1. Understanding different types of "cash offers" - not always literal cash, can be from hard money loans, lines of credit, 1031 exchanges, etc.

2. Tips for making a competitive offer as a financed buyer:

Submit offers quickly, with a short timeline (e.g., 24-hour response)

Minimize contingencies and inspection periods

Offer higher than list price but ask for seller credits to cover closing costs

Work with a lender who can close quickly (e.g., 2 weeks)

3. Exploring alternative financing options to compete with cash buyers:

Cash buyer programs that provide upfront cash, then you refinance

Bridge loans using equity in your current home

4. Importance of being prepared as a financed buyer:

Get pre-approved, have documents ready

If selling a home, make sure it's ready to list quickly

Understand debt-to-income ratios and loan program limits

5. Strengthening a contingent offer by putting down earnest money, shortening timelines, etc.

6. Recognizing that even with financing, you can be competitive by understanding the market and working closely with your agent and lender.

Mikal Mele
Loan Officer & Mortgage Advisor
NMLS 963197

Casey Carpenter
Loan Officer & Mortgage Advisor
NMLS 1458123

Addy Nett
Loan Officer & Mortgage Advisor
NMLS 1542184

Mortgage Express, LLC NMLS ID 40831 | Equal Housing Lender

Previous Episode

It's Officially Property Tax Season

Send us a text

1. Property taxes in Oregon are unique - they are paid annually in November, unlike most other states where they are paid twice a year.

2. There are discounts available for early payment of property taxes in Oregon - up to 3% if paid in full by the 15th of November.

3. The fiscal year for property taxes in Oregon runs from July 1 to June 30, so when you purchase a home, you may need to pay back the seller for the portion of taxes they have already paid.

4. Local lenders who are familiar with the Oregon property tax system are important, as out-of-state lenders may not understand the nuances.

5. There are potential ways to reduce property taxes, such as if the homeowner is a 100% disabled veteran or elderly.

6. New construction properties pose unique challenges, as the taxes are initially based only on the land value until the home is assessed.

7. Property taxes can fluctuate year-over-year due to new taxes or levies being added, so it's important to be aware of this when budgeting.

8. Understanding whether your property tax statement is "yellow" (taxes paid) or "green" (taxes unpaid) is crucial, and you should reach out to your lender if you have any questions.

Mikal Mele Mikal Ashley Mele
Loan Officer & Mortgage Advisor
NMLS 963197
Casey Carpenter Casey Carpenter
Loan Officer & Mortgage Advisor
NMLS 1458123
Addy Nett
Loan Officer & Mortgage Advisor
NMLS 1542184
Mortgage Express, LLC NMLS ID 40831 | Equal Housing Lender
Not a commitment to lock or lend. Terms and conditions apply. Not all applicants will qualify. Licensed in OR/WA/CA/AZ/ID with licensing in California by the Department of Financial Protection and Innovation (DFPI) under the Residential Mortgage Act. Questions and concerns may be directed to our Corporate Office or [email protected]. Visit www.nmlsconsumeraccess.org for more information.

Next Episode

Recasting vs. Refinancing | What's The Difference?

Send us a text

Casey, Addy, and Mikal sit down to cover topics ranging from "Girl Talk" to making sure you're really seeing all the options available to you when it comes to refinancing vs recasting.
Mikal Mele
Loan Officer & Mortgage Advisor
NMLS 963197
Casey Carpenter
Loan Officer & Mortgage Advisor
NMLS 1458123
Addy Nett
Loan Officer & Mortgage Advisor
NMLS 1542184
Mortgage Express, LLC NMLS ID 40831 | Equal Housing Lender
Not a commitment to lock or lend. Terms and conditions apply. Not all applicants will qualify. Licensed in OR/WA/CA/AZ/ID with licensing in California by the Department of Financial Protection and Innovation (DFPI) under the Residential Mortgage Act. Questions and concerns may be directed to our Corporate Office or [email protected]. Visit www.nmlsconsumeraccess.org for more information.