It's a 4BR/2.5BA post and beam Gambrel in the Lakes Region of New Hampshire. It was listed at $439,000 and our founder made an offer of $460,000. His offer had a financing contingency, but his preapproval and credit history were rock solid. Spoiler alert, he didn't win. Instead the seller accepted a cash offer of $450,000. The sale closed 67 days later.
It's a story you've heard before. Maybe it's happened to you. Buyer finds a perfect home, writes a heartwarming letter and makes a great offer. In fact, it's the best offer. Seller "makes a really difficult decision" and crushes Buyer's dreams by going with a lesser offer just because it's cash.
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Even though financed buyers submit the highest offers, sellers consistently choose lower offers from cash buyers. It's a lose-lose outcome because sellers accept less than market value for their properties, and many motivated buyers remain on the outside looking in.
The problem is contingency risk, but all contingent offers are not created equal. The likelihood of a well-prepared, well-qualified buyer not closing is minimal, but sellers lump together all offers with financing contingencies as if they had the same risk.
Leadoff believes great financed buyers are every bit as good as cash buyers, and we're committed to leveling the playing field. Participating lenders pre-approve buyers for their mortgage, and then we give those buyers a green light to make cash offers without financing or appraisal contingencies. Every offer comes with a guarantee to the seller that it will close on time, even if Leadoff has to purchase the property on behalf of the buyer.
We look forward to helping you make the most competitive offer possible on your next home.
- The Leadoff team