We’re going over some new models that could help you compete with cash offers.
How can you compete with cash offers in this market? So many homes right now are being sold for well above asking price with large, non-refundable due diligence fees and all sorts of other hyper-competitive elements. The thing that most people can’t compete with is the cash offer. They are going to have a very big advantage in this market. Thankfully, some emerging models could help you compete with cash offers.
The solutions are a little bit different when you own a home versus if you don’t own a home. If you currently own a home and you have to sell before you can buy another one, there are some solutions for you. For example, you can get an offer from an iBuyer or from an investor to buy your current home so that you can remove at least part of the contingency from the purchase of another.
One of the investors that we’re currently working with will buy your home now and give you whatever equity you have in it so you can take that money and shop for a new home. Then, after you move out, they’ll sell your home and give you all of the proceeds that they haven’t already given you. For example, if you have a $250,000 home that you sell to this investor and then they turn around and sell for $300,000, you get the extra $50,000.
“Some emerging models could
help you compete with cash offers.”
Another option, if you own a home and need to sell it before you can buy another one, is to have an investor buy your new home for you and rent that to you while you get your old home ready to sell. The real advantage of that is that the investor is likely going to be making a cash offer on your new home, so you’ll be able to compete with others who are making cash offers now even though none of it is your own money. You’ll rent that home from them while you sell yours and then you pay them back.
Another emerging model is to have an investor make a cash offer on a home for you. Then you get to move into the new home, sell your old home, and pay the investor back after you refinance. That’s a powerful tool as well; it does make your offer way more competitive because it’s a legitimate cash offer that’s not using your own cash. Some of those investors will actually form an LLC with you. You form a new company, and that LLC then owns the home that you move into. Then your responsibility is to buy that LLC back from that investor at some point in the future.
These are all really powerful options and great emerging models. Most of these options are available here in the Triangle, so reach out to us via phone or email today if you have any questions. We would love to hear from you.