Normally, a “cash buyer” (a home buyer who doesn’t need a mortgage) is considered the most desirable by a home seller. That said, Accunet recently helped a couple win against a cash buyer, and two others, in a multiple-offer situation.
It helped that the seller was also a real estate broker who genuinely understands the difference between an Accunet fully-verified Rock-Solid Guaranteed Pre-Approval and the flimsy “pre-approvals” issued by most other banks and lenders where they only verify the home shopper’s credit report.
It’s all about the details
The pre-approval letters issued by one of Wisconsin’s largest banks explicitly state they have not verified the home shopper’s income and down payment. Flimsy. And that’s the norm.
Accunet spells it all out on the Rock-Solid Pre-Approval Letter: the maximum monthly payment the buyer can afford, the maximum property taxes, purchase price, down payment, loan amount, loan type and interest rate. The seller and listing agent can match the financing terms from the proposed offer to the terms of an Accunet Pre-Approval letter and see there’s a perfect fit. No missing details. The vast majority of our competitors’ pre-approval letters are the polar opposite – “Bob and Sally can afford to buy a $400,000 home…” or “…can afford to buy 12345 Main Street.” Really? With how much down payment? Do they need to sell a home first? What if they offer more than the asking price?
How did we find out about the cash offer?
Knowing the nature of the other offers in a multiple offer situation isn’t something that’s discussed until the closing is over (if at all). But our winning buyers and their buyer’s agent were curious, asked the question after closing and got the answer. There were three other offers, and it was a cash offer that came in second place.
Did our Rock-Solid pre-approved buyers pay more than the asking price? They did. $25,000 more, in fact, on a listing price in the $375,000 range, which is about 6.5% over asking. They included an appraisal contingency, however, so that if the newly remodeled home didn’t appraise at their higher offer price, they could cancel the offer. Fortunately, the appraiser agreed with the accepted offer price.
Short deadlines are okay with Accunet
Our successful bidder also wrote their offer with extremely short, 14-day appraisal and financing commitment deadlines and a 20-calendar-day closing. Those are much shorter deadlines than most lenders can live up to, but because Accunet had already verified the buyers’ down payment, income and credit, it was enough time to get the home appraised and the entire loan file approved and ready for closing. Of course, the buyers and their buyer’s agent worked closely with their Accunet Loan Consultant, Aaron Artru, and Loan Manager, Cherie Dooley, to make sure Accunet could meet those short deadlines.
Confidence and reputation matter
It’s all about instilling confidence in the seller’s mind and the mind of the listing agent. A recent Wall Street Journal article focused on what buyers can do to help get their offers accepted in this crazy competitive Seller’s market. Working with a local lender who has a solid reputation was quoted by real estate agents in several markets as being a critical piece of the winning formula for buyers. That’s exactly what Accunet provides – a solid reputation for making sure there are no surprises when it comes to our Rock-Solid pre-approved home shoppers.
To maximize that confidence, Accunet backs up each Rock-Solid Pre-Approval letter with a $2,000 cash guarantee – we’ll pay $1,000 to the seller and $1,000 to the buyer if we can’t make good on one of our Rock-Solid Pre-Approvals. As far as we know, it’s the only pre-approval letter of its kind.
Get Started Today
We like to say our Rock-Solid Pre-Approval letter is “the next best thing to a cash offer,” but in this particular case, the seller decided it was actually better!
To get started on your Rock-Solid Pre-Approval today, just click on the blue button to connect with one of our helpful Loan Consultants.