As I’ve said in a number of previous blog posts, cash is king when it comes to real estate, and luxury real estate in particular. It’s ideal for both the buyer and the seller, but it often helps buyers get a deal on the best house, for the best price, on the best terms.
A cash offer is an attractive one for a buyer to put on the table. Sellers view cash buyers as far more promising than a buyer who still has to secure a mortgage for a luxury property, which could require anywhere from $1 million to $5 million and could potentially be difficult to obtain.
Buyers certainly understand the advantage of putting cash on the table. About 31% of all real estate purchases across the country were made with cash in 2013. But if an all-cash offer isn’t an option, there are alternatives that can also be effective. Here are a few tips for buyers who are navigating the all-cash market:
Get a good loan: If you need to obtain a mortgage, make sure you’re going with a lender who can close loans quickly or one that offers a range of financing options. A lender that can help get a deal done quickly can make or break a deal.
Be flexible: A no-cash offer could become a part-cash or even all-cash offer if you’re able to add in a second mortgage or a home equity line of credit to your offer. A some-cash offer is better than a no-cash offer.
Be patient: Offers can disappear as quickly as they were put in. An all-cash buyer could pull out their offer, so waiting it out could reap big rewards, especially if you’re willing to put down a large down payment.
Know the market: A good agent will help you find properties and sellers that are open to accepting bids and financing, so you won’t waste your time on properties that only plan to accept cash bids.
I discuss financing with my clients in the very beginning, as it’s a crucial part of the process. How you plan to purchase a new Chicago home plays a critical role, especially in the negotiation process for a luxury property.
This is why it’s especially important to have a savvy realtor in your corner when shopping for Chicago real estate. Together, the two of you should discuss everything you have to put into an offer even before you’ve found a home you’d like to purchase. A good realtor should walk you through the various methods of buying a home and see if adding cash to your offer is possibility. He or she can use that information to get you, the buyer, the best deal on a new home.
If you’re searching for a Chicago luxury home, give me a call to discuss your wants and needs. We can walk through the different ways you can have a competitive offer ready for a home you really want rather than chasing every new listing that hits the market. Give me a call at (312) 498-5080 or email me at email@example.com.