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The Power of Cash: How to Save Money and Win Bidding Wars

If you’re buying a home in a competitive housing market, you may want to consider making a cash offer.

Cash offers are more likely to be accepted in a bidding war—even if they’re not the highest offer. 

“A cash offer gives you an advantage when buying a property because it’s more desirable to a seller,” said Ralph DiBugnara, a regional vice president at New American Funding. He’s based in Edgewater, N.J.

That’s because sellers often believe cash offers are more likely to lead to a sale than an offer contingent on a buyer being approved for a mortgage.

Some lenders will provide qualified buyers with cash to buy property. The lender will then sell it back to the buyers once the buyers take out a mortgage to pay the lender back.

Ralph DiBugnara NMLS # 19269