How to Make an All-Cash Offer: Smart Strategies for Bay Area Homebuyers

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Buying a house in the Bay Area is a difficult task, with high housing prices, fierce competition, and many buyers with millions of dollars in all cash. For ordinary people, it seems that they can only look on. However, some ordinary loan buyers can easily grab cheap and good houses, which makes people curious, how do they do it? The following summarizes the tips that must be paid attention to from preparing an offer to placing an offer, to help everyone avoid pitfalls and avoid more mines, so as to make the offer stand out as much as possible!

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1. How to prepare an offer

What should be included in the offer package? This is determined by the seller. There is no standard format. The proof that can be accepted by the seller shall prevail . Therefore, you should carefully read the requirements of the seller's agent before placing an offer. But basically, before placing an offer, you should prepare three documents in advance: a complete and correct purchase contract, a bank pre-approval letter, and proof of funds for the down payment.

1. RPA (California Residential Purchase Agreement)

A home purchase contract is a must, which includes the offer price, down payment, contingency (many people in the Bay Area will remove contingencies when buying homes), etc. Before signing, you must carefully verify the price, transfer time, closing cost allocation and other details.

2. Pre-approval Letter

If you want to apply for a loan, you need to provide a Pre-approval Letter. This is a preliminary loan certificate issued by the bank to the loan applicant. It gives a loan budget based on personal credit score, income, deposits and other conditions. It is a strong proof to the seller that you can afford the house price. It should be provided when making an offer for the house you like. It should be noted that this is only a preliminary document and does not mean that the loan interest rate and amount will be the same when buying a house.

3. Proof of Funds Statement

Proof of assets is also necessary, including bank fund certificates, monthly bank statements, online banking account balance documents, stock funds or other fund account balances, etc. Remember to hide the account name or only keep the last digit of the account name.

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2. What should I pay attention to before making an offer?

1. Read the Disclosure

Before you make an offer to buy a house, you will get a detailed disclosure package from the seller. This disclosure report is very important. You must read the report provided by the seller to find out possible problems with the house, such as: preliminary title report, termite inspection report, house inspection report, regional natural disaster report, lead paint report, surrounding pollutant report, whether anyone has died in the house in the past three years, report on any problems with the house known to the seller, etc.

2. Investigate the community environment

In addition to viewing the house at an open house, you should also drive around the house to see what people are doing around it at different times and get a better understanding of the community . For example, if the house is located in a neighborhood close to a highway, in addition to listening to the noise during the day, it is recommended to listen to it at night as well, as it usually affects people when they are about to fall asleep. You can also check the crime reports around the house, what buildings are within a mile of the house, and what are the hospitals, supermarkets, parks, and other community facilities nearby.

3. Get to know your neighbors

Before buying a house, try to say hello to your neighbors and chat with them to see if they welcome you. In addition, try to visit the place more often in the evening or even on weekends. Check if your neighbors have vicious dogs, if they often have unauthorized guests, if they like to hold parties, and if the backyard of their house is well maintained.

4. View Permit history

Check whether there are any additions or remodels without a permit. Projects without a permit are likely to be non-compliant and may result in fines or even requirements for correction or demolition.

5. View insurance claim history

Ask the seller for the home insurance claim history for the past five years, pay attention to possible repair reasons , and find out whether the seller has paid for fire insurance, flood insurance, etc. before.

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3. How to make your offer stand out?

1. Understand the seller’s psychological expectations

When viewing a house, it is also very important to understand the seller's situation, such as whether he is in a hurry to sell the house, what he values ​​most in the process of selling the house, etc. Investigating the seller's background and acting in a way that caters to his preferences will often increase your favorability and the possibility of winning.

2. Build trust with the seller agent

Experienced buyers’ agents will go to open houses to chat with sellers’ agents, gain their trust during the conversation, and let them remember the buyer’s name and situation. They will also respond quickly and reply to the sellers’ agents’ calls and messages in a timely manner, leaving a good impression on the sellers through timely and effective communication.

3. All cash offer vs Loan offer

When people make offers in the Bay Area, especially in the popular areas, they are often defeated by all cash offers. Why are all cash offers so attractive to sellers? Generally, there are two advantages: faster closing time and greater certainty. All cash offers do not require a lengthy loan process and can be closed quickly. At the same time, because no loan or appraisal is required, it ensures a smooth transaction. To make everything simpler, sellers will of course prefer all cash, even if the offer is not the highest.

4. What should I do if I don’t have the ability to go all in cash?

Not every buyer can afford to pay all cash, but Axis Realty, a well-known one-stop real estate company in the Bay Area, can help you! Axis Realty, a professional brokerage team and a loan team, have joined forces with their sister company RateDNA to launch the "All Cash" service to help you buy a house!

Simply put , this is a financial tool that can quickly turn a buyer into an all-cash buyer. The buyer will first cooperate with Axis Realty to get full cash through a short-term loan to buy the house of their choice. After the house transfer is completed, the buyer will then transform himself into a regular loan buyer through normal refinancing.

In this way, buyers can transform themselves into "All Cash Players". Many buyers use this advantage to successfully buy their dream houses without having to make the highest offer.

During this process, Axis Realty's sister company RateDNA is responsible for the buyer's loan business . RateDNA is a professional loan company in California and one of the fastest growing mortgage brokers in California . It provides various plans for all homebuyers and investors, focusing on simple application, fast approval, extremely fast loan, and efficient and responsible. Therefore, through our products and services, buyers can more competitively grab cheap and good houses!

So, does it cost extra to participate in the Axis All Cash Offer? The answer is that the program itself does not charge any fees! You can buy a house with all cash without spending any extra money. This is the best part of the All Cash Offer!

Of course, "All Cash" is only one way to buy a house. We will discuss the most suitable solution with you based on the specific situation of each house. Our goal is to help you buy your favorite house at the most reasonable price!