1. Offer all Cash. This is the top way to be accepted, but obviously it takes a lot of cash! Many clients today are borrowing funds from retirement funds or parents, and refinancing post-close to pull out the funds to repay parents. There are a number of "delayed purchase" type financing options available and some are priced as if they were a purchase. It is important to verify ahead of time with your lender what you will be eligible to refinance the home for post-close. In some cases it might be necessary to wait for six months, but there are other options available within 90 days of closing.
2. Obtain a full-pre-approval from your lender, if using financing for the purchase. We have a program called "Keys on Time" where we actually submit the loan file with all income and asset documentation for a full pre-approval with underwriting. Once completed, we guarantee closing within 12 days of a contract to purchase, assuming all goes well with the property appraisal. This is a powerful negotiating tool.
3. Offer a non-refundable deposit, or an offer with no-contingency period for financing or inspections. Risky? Yes...
4. Last, but certainly not least: Write a personal letter to the seller, describing why you love their home, and telling a story about yourself. This may be the most powerful tool you have in the toolkit. Sellers have been known to accept lower offers, or those with contingency periods for financing, for buyers who wrote heartfelt letters about why they love the neighborhood, the home, how important it is to them, and why. We all appreciate the personal touch. Relationships are key to everything.
For your reference, here is an article in the WSJ on this topic: The Strangely Effective (and Easy) Way to Win a Bidding War
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