To understand how to win, observe two cases where the buyer seeking a loan won out over the all-cash offer.
There were twelve offers and the top two, price-wise, were all cash with quick closes. My clients expressed their love of the property, showed proof of a strong down payment, and prevailed. (Jeannie Rorvik, the listing agent, was so confident of the buyers’ intention to perform that she spent nearly half of the escrow period in Paris). A lot more could be said about the purchase of 766 Sun Lane but the bottom line was a set of clear, unambiguous communications.
A seller seeks the highest price and the best terms. Best terms mean greatest assurance that the purchaser will follow through and purchase the property without ‘bad behavior’. (Bad behavior includes a large range of actions, anything from not closing to negotiating over price, to killing the property with inspection reports, to delaying the close).
In a Mill Valley sale that closed mid-April the sellers with whom I was working had multiple offers and chose buyers who needed to obtain a loan over a similarly priced all cash offer because the clarity of the offer indicated that the buyers getting a loan (a ten day contingency) were more likely to close.
All cash offers are plentiful and a wonderful option in a hot real estate market but all cash is not the end all/be all. The best presentation of your offer will go a long way to getting you safely home.
While one might be inclined to feel sorry for buyers (especially those who aren’t shopping with all cash) the best advice is: Don’t. Don’t winge. Don’t sit around feeling sorry for yourself … that is simply a waste of time. Perfect your purchase offer through the clear emphasis on intangibles.