The Tampa real estate market offers a lot to homebuyers. However, many first- time buyers have to compete against all-cash investors in Tampa. The investors are usually buying properties in the “starter-home” range, so, first-time buyers must have a good strategy in order to be competitive in the Tampa real estate market.
This is where the Kelly Parks Team real estate agents step in. Let us help you come up with an excellent strategy so that you can find that home you want. Here are some things you should consider:
- Your strongest offer
Present your strongest offer first. This is considered to be the most straightforward way to compete with an all-cash investor offer. You give them your best shot: full-price or above-asking offer.
- Get pre-qualified or pre-approved
You should be pre-qualified if you’re going to compete with an all-cash investor. This means that you have a pre-qualification letter saying that your lender or mortgage broker reviewed your basic information and that you are qualified to buy, but no documentation has been supplied. Even better, getting a pre-approval letter means your mortgage broker has documented your income and other financials and that you are approved for a certain mortgage amount.
- Earnest money
Investors tend to exclude earnest money in their offers, so here you have a chance to show you really mean business. Beefing up your earnest money deposit can help you win the bidding war.
- Buyer’s/ seller’s motivations
You should always ask: “Why are you selling?” The information you get may be of huge help to you in structuring you offer according to the seller’s needs. Also, reveal your motivations. Your sincerity may inspire them more than investors looking to flip their home in 60 days. Why not include a letter of intent with your offer?! It’s worth a try.
- Foreclosures that are backed by government agencies
Government agencies such as VA, FHA, USDA etc. typically give preferences to families or individuals who will use homes as primary residence and they also have restriction periods for investors, so they have to wait to submit their offer. You should check their websites for lists of foreclosures and pay attention to bid dates.
- Do your best
If everything else fails, you may need to gather some cash so you can compete against all-cash investors. Sometimes first-time homebuyers’ parents refinance or take another mortgage on their already-paid-for-home and thus help their children with the cash they need.Parents may also lend money to their children to offer a larger escrow deposit and show they’re really serious buyers. Be sure to submit a “Proof of funds” with your offer which will show that you do in fact have the buying power.
If you’re trying to win against an all-cash investor or you just love the house so much, feel free to contact the Kelly Parks Team at (813) 579-2816 to speak with a realtor. Also check out our blog for some more great tips. Let’s help you with your real estate needs!