Buyers who aren't paying cash for a house aren't necessarily out of luck. Here's how you can gain an  advantage over cash buyers.

Buyers making a cash offer on a house are active in many markets, and they can strike a sense of fear in new buyers who are bidding on a home. Cash home buyers can close quickly and provide sellers with an easy sell mentality.

But does this mean a qualified buyer putting down 20 percent or more shouldn’t try to compete with cash home buyers? Absolutely Not.

What if you can’t make a cash offer on a house?

The truth is, a buyer getting a mortgage can still compete against cash home buyers and win.

These are the questions that can make the difference:

  • Do you have a 20% or more to pay down?
  • Have you a good employment record?
  • Do you have Money saved in addition to your down payment?
  • Is your debt small compared to your income?
  • Do you have good to great credit?

If you answered yes to most or all of these questions, your purchase should be as good as a cash buyers.


Paying cash for a house doesn’t mean a buyer will win over the seller. Well-qualified buyers who put in a little extra time can win over the seller..

Here is how you can compete

  • Be up front about your finances. Make your offer as strong as cash by providing the seller the assurance they need to accept your offer. Send that pre-approval letter from your lender.
  • Ask your lender to get a head start on the mortgage. By sending all pertenant information to the lender you can get ahead of the game.  
  • Shorten the loan and appraisal contingencies. Ask your lender how quickly they can send an appraiser to the property, and how long the loan would take to turn around.
  • Inspections need to be done as soon as the contract is approved A shorter inspection period can be appealing to the seller, As well as the appraisal. Go ahead and pay the appraisal fee, get your inspector in and out. Shelling out a few hundred dollars and getting the inspections done within days of having your offer accepted shows the seller you mean business. It also gives them comfort that they’ll get over the biggest hurdle quickly.
  • Put in your Best Offer First when competing against other offers.. Cash buyers nearly always expect a lower selling price from the seller simply because they’re offering cash and are a sure thing. As a result, the cash buyer will often make a lower offer. To increase your chances, top the cash offer, even if means paying a little more than you think the home is worth. The seller, more often than not, wants the most in his or her pocket. So when  faced with a few thousand dollars’ difference, the seller just may accept your offer instead of the Cash offer. Also let the seller know you will close as soon as the lender can get it through.  Talk to your lender to see how soon it can be..
  • Make yourself known to the seller. Some buyers write  letters, hoping to appeal to their personal side. Does this work? Sometimes! . The seller almost always wants to know more about the potential buyer especially if they have a sentimental attachment to the home.. Ask your agent to write a  letter on your behalf or perhaps you can tell your own story of why you love the home.
  • Be realistic and Stay Positive. Make sure your finances are  in order. Work with a good agent, and start working with your lender to get your documents in. Structure yourself and your offer to show that you are Seriously Ready to purchase this home.
  • Call Your East Tn Realtor-Rose Mary Justice at 423 258 4830 to get the job done.
  • Synergy Realty Pros-Rose Mary Justice