Can Mortgage Borrowers Compete With All-Cash No Contingency Offers?


In a hot market, all-cash offers can catch buyers’ eyes. However, cash offers aren’t always the best option for all buyers. They can cause problems for mortgage borrowers, too.

Can Mortgage Borrowers Compete with All-Cash Offers?

Buying a home can be a stressful and lengthy process, especially if you’re dealing with a competitive seller’s market. Many buyers may think they can make a better offer by waiving contingencies, but this can be a risky move.

You can avoid the risks of a contingency waiver by partnering with an experienced real estate agent to determine which types of contingencies you should waive and which ones you should keep on the table. It’s also important to consider whether you can afford to forfeit your earnest money deposit before deciding on a non-contingent offer. Read more


What Are All-Cash No Contingency Offers?

All-cash no contingency offers are a popular choice for home sellers. These offers often come with fewer conditions than other offers and typically close faster. Depending on the buyer, they may not require an appraisal or financing contingency.

How to Find Out if Your Lender Does All-Cash No Contingency Offerings

To determine whether your lender does no financing contingency offers, you need to ask them. You can do this by asking to speak to someone in their wealth management department, or by contacting them through the phone or email.

If you don’t have all-cash, you might be able to offer more percentages of your earnest money to help you stand out in the crowd and a handwritten letter stating your intent to be a good steward of a family home. You might also be able to remove inspection and appraisal contingencies, which can be a big plus for some buyers.


What Can I Do to Win a Cash Offer?

In a seller’s market, buyers can use a cash offer to their advantage. The key is to be

creative and find ways to get past any hurdles that may arise, according to HomeLight’s 2022 Buyer Seller Insights Report.

When you’re making a cash offer, be sure to include the right amount of earnest money, a high percentage of it and a handwritten letter stating your intention to be a good steward. You should also take time to discuss the specifics of your situation with a qualified realtor and personal loan officer to ensure that you’re making the right decision.

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