In today’s real estate market, people are having to compete with investors who can bring an all-cash offer to a home buying bidding war. Cash sales hit a high of 25% in April of last year, according to the National Association of Realtors.

Through my experience in the real estate industry, I have seen a lot of unique ways to put in an offer on a home. These unique strategies can help you stand out against the all-cash offers. Here are four ways that you can compete in an all-cash world:

READ ALSO: The 3 hottest neighborhoods in Arizona

Present a competitive offer

Most cash buyers are investors who want to minimize purchase price and maximize profit.  Therefore, you might have a good chance of outbidding them by coming in with a competitive price offer. If you can offer above the asking price, it may entice the seller to select your offer over others.

Send a personal letter to the seller

It’s important that your offer is unique and stands apart from the rest. Sending a letter with your offer is a common method of getting the seller to put a spotlight on you, which can help boost your chances of winning the bid. Some sellers have an emotional tie to their homes, so they may want to sell to another family, rather than an investor. Write about why their home is your dream home.

Provide a larger earnest money deposit

Usually being about 1 to 3% of the home’s purchase price, an earnest money deposit can be a way to demonstrate financial stability and show how serious you are about purchasing the house. But make sure that you fully read and agree to the contract, because there are circumstances where your earnest money might be nonrefundable.

Find out the terms the seller is looking for

In preparing the offer for a house, you will want to focus on what the seller wants as well as what you want. If the seller is in-between houses and needs to rent the home from you for a few months and you can, let them know that in your offer. Have your agent find out all the seller’s needs, in order to help you sweeten the deal. Being flexible in this market can give you a huge leg up on the competition. 

Although an all-cash offer can be extremely enticing, you can find ways to make sure that your offer is just as strong, if not stronger, in many ways. Work with your agent to build an offer that the home seller is unable to refuse!    


Rich La Rue is the Designated Broker for HomeSmart Phoenix the flagship brokerage operation in the HomeSmart system. La Rue has more than 38 years of experience in real estate sales and management from real estate offices to regional and national operations. La Rue began his career in real estate in 1983 in Phoenix, Arizona as a sales associate. In 1986 he earned his Arizona Real Estate Broker’s License. He also holds a California Real Estate Broker’s license, GRI, CRS, and CRB designations as well as the e-PRO and the SFR certifications. For more information, visit