Make A Cash Offer In Person
Do not borrow the money, and do not make an offer though any commission-based buyer's agent. Save, invest, and make a cash offer in person or by mail direct to the seller (not the seller's agent!) You will come out way ahead by saving and paying cash with no agent because:
- You'll know exactly how much you can afford, because you'll have the money in the bank.
- You don't have to pay any interest, points, or loan application fees.
- A cash offer is more attractive to the seller, so you can get a lower price.
- An offer without an agent is more attractive to the seller's agent by far.
- When you make your offer directly to the seller and not to his agent, then his agent cannot block it.
- If the seller has no agent (FSBO) you both avoid all commission costs!
OK, there is an exception: if you can find a house so cheap that the rent would cover all mortgage and other costs, and you would also still have a comfortable cash cushion left over, then perhaps it is OK to take out a mortgage.
Here are free offer forms and other contracts you can use. Make sure you leave yourself contingencies so you can back out.
Free Real Estate Contracts
If other people see the wisdom of paying cash as well, then YOU don't have to pay as much either. Help spread the word, for everyone's benefit. Please consider buying a bumper sticker. Offer strategies to discuss:
- dual agency
- multiple low backup offers
- researching the seller for recent death, divorce, bankruptcy