@Dale Miller A true cash offer (not hard money, which like other loans, has an appraisal component) presents some real advantages for sellers.
It speeds up the transaction. Where a normal loan might take 30-45 days to close, a cash offer can be completed in whatever time it takes to run title - a matter of days, not weeks.
It eliminates the risk of financing falling apart during underwriting. That can happen because a buyer suddenly loses his job or does something really dumb, like buying a new car which kills his DTI.
It eliminates the risk of the deal falling apart with a bad appraisal. I had a deal under contract for my seller at $389,000. A wildly over-zealous VA appraiser came back at $330,000. I triggered the Tidewater clause and got it to $345,000, which was enough for my seller as his wife had fallen in love with their next home.
The speed of appraisals has been more of an issue recently, especially with COVID-19. Cash offers don't need appraisals.
I have also seen more than one instance where a borrower fraudulently inflates their income in order to qualify for the home loan. Underwriting eventually finds out and the deal blows up several weeks down the road.
These are just some of the reasons that a true cash offer is far superior to any offer that involves a loan and these are issues that your in-laws simply can't overcome.
The best course of action for them is to be sure that they have a solid pre-approval in place. That means that in addition to running credit, the lender has received and reviewed pay stubs, W2s, tax returns and bank statements.
Next they need a good Realtor to help them to make smart offers. If a property is properly priced in a seller's market where homes are currently selling at 100% - 103% of asking price, don't bother trying to come in at 95%.
They should also consider writing offers with an escalation clause. "Buyer will raise their bid to exceed any bona fide, arms length offer by $1,000 up to a maximum offer price of $XXX,XXX." The risk is that you've revealed your maximum offer, but in a hot seller's market, your options are somewhat limited.
They also need to be prepared to act FAST. Get a property alert from somewhere other than Zillow, who can be anywhere from hours to a day or more behind a live MLS feed. Get in before the first open house and be prepared to write an offer on the spot. If possible, bring a contractor or home inspector with you - and bring your checkbook so you can write an EMD check while you're there.
And good luck!
Finally, their Realtor should consider writing offers with a very short expiration. Find out when the agent can present your offer and then write "This offer expires at [4 hours from that time]". A sharp seller's agent will ignore your deadline, but many won't.
