Real Estate News

How First-Time Buyers Can Compete With Cash Offers

First-time homebuyers face tough competition from cash offers but can succeed with strategic approaches. Get pre-approved for larger amounts, consider waiving contingencies, and work with agents

flareAI Services

24 Sep 2025 — 6 min read

Quick Listen:

Podcast

First-time buyers often feel outgunned by cash-wielding investors and retirees. Cash offers promise sellers speed and certainty, leaving financed bids in the dust. Yet, a seismic shift in the real estate world is giving newcomers a fighting chance. The NAR settlement, finalized on October 31, 2023, has dismantled rigid commission structures, empowering buyers with flexible tools and strategies to compete. With innovative PropTech, negotiable fees, and smarter financing, first-time buyers can now stand toe-to-toe with cash offers. Here's how to seize the advantage.

Home buying or selling shouldn't mean paying for services you don't use or need. Now, with new rules, you can choose exactly what you pay for. Side Door's smart match engine connects you with vetted agents offering flexible service levels, so you pay only for what you use. Keep the guidance, skip the extras, and save thousands and still get the keys in hand. Join Side Door for FREE today!

A New Era for Commissions

A landmark ruling in Missouri's Western District Court found the National Association of Realtors (NAR) and major brokerages liable for a price-fixing scheme that inflated real estate commissions. In the U.S., home sales typically incurred fees of about 6% of the sale price, split between buyer and seller agents a rate notably higher than in countries like Australia or Canada. This verdict, delivered in October 2023, has unshackled buyers from mandatory commission payments, allowing them to negotiate fees or opt for specific services. In competitive markets like Holland, Michigan, or Florida's coastal hubs, this flexibility is a lifeline for first-time buyers facing cash-heavy competition.

The new rules don't mean commissions have vanished. As Yahoo Finance reports, buying and selling costs haven't dropped dramatically, but buyers now have leverage to tailor agent services to their budgets. Misconceptions persist some believe agents work for free or that fees are universally lower. In reality, commissions vary by region and deal, but the ability to pick and choose services is transforming how first-time buyers approach the market.

PropTech: Your Competitive Edge

Technology is leveling the playing field. Platforms like West Edge Realty and Real Estate One offer real-time market alerts, letting buyers act swiftly in fast-moving markets like West Michigan. PropTech tools, such as MLS access and commission calculators, provide transparency on costs and trends, empowering buyers to make informed offers. In Florida, where condos vanish quickly, these tools help buyers outpace institutional investors scanning listings.

Lending innovations are equally critical. Products like “cash offer” mortgages, available through institutions like Lake Michigan Credit Union, mimic the speed of cash deals by guaranteeing rapid closings. Bridge loans, another option, allow buyers to tap equity or secure temporary funds to move fast. These solutions aren't just for the affluent buyers with strong credit can use them to craft offers that rival cash in markets like Holland or Miami.

Success Stories in Action

In Holland, Michigan, a first-time buyer outmaneuvered a cash offer on a lakefront home by leveraging à la carte services from an agent at Premier Lakeshore. Instead of a full-service contract, they paid a flat fee for negotiation support, saving $4,000 in commissions. That savings boosted their offer by 1.5%, clinching the deal. In Florida, a buyer worked with Chicago Title to expedite closing to 14 days, swaying a seller over a higher but slower cash bid. These cases show how collaboration between title companies, lenders, and agents can create streamlined, buyer-friendly transactions.

Such partnerships are a hallmark of the post-NAR era. Rather than working in isolation, agents and service providers are aligning to meet buyer's needs. For example, Red Cedar Ventures in Michigan connects buyers with lenders offering tailored financing, cutting closing times and boosting offer appeal. This collaborative approach is redefining how first-time buyers navigate competitive markets.

Challenges in a Cash-Driven Market

First-time buyers face steep hurdles. In Florida, institutional investors snap up properties for rental portfolios, while in West Michigan, retirees with deep pockets dominate. Limited savings make it tough to match cash buyer's hefty earnest money deposits or waive contingencies, which sellers view as risky. The perception that cash equals certainty remains a stubborn obstacle, even for well-qualified financed buyers.

Startups like SideDoor, which offer modular services, also face skepticism. As noted in prospect objections, some buyers hesitate to trust a new platform, expecting the polish of established competitors like Zillow. Big players pour millions into marketing, creating a perception of reliability that newer entrants struggle to match. Yet, SideDoor's focus on customizable services allowing buyers to pay only for what they need offers a compelling alternative in this evolving landscape.

Turning Obstacles Into Opportunities

The NAR settlement flips these challenges into advantages. Buyers can negotiate commissions directly, freeing up funds for stronger offers. For a $300,000 home in Michigan, cutting a 3% buyer's agent commission to 1% saves $6,000 money that can bolster a down payment or cover closing costs. Modular services, like hiring an agent for contract review or market analysis, further reduce costs without sacrificing expertise.

Coordination with title companies and lenders is another game-changer. By streamlining appraisals and inspections, buyers can shorten closing timelines, making their offers nearly as attractive as cash. Social media platforms like Instagram and Facebook also help buyers find agents who prioritize flexibility, showcasing their value through transparent, client-focused content.

Strategies to Win Against Cash

To compete, first-time buyers need a playbook. Start with an underwritten pre-approval, which signals rock-solid financing to sellers. Next, offer a larger earnest money deposit 1.5% to 2% of the purchase price shows commitment without breaking the bank. Shorten contingencies where possible, like reducing inspection periods to seven days with a trusted inspector from your network.

Partner with agents who embrace à la carte services, as offered by platforms like SideDoor. Instead of a full-service package, hire for specific tasks, such as drafting a competitive offer or navigating paperwork. Finally, leverage PropTech to stay ahead set up real-time alerts on platforms like Realtor.com to jump on new listings instantly. Speed and strategy are your allies.

The Future of Home Buying

The real estate landscape is evolving rapidly. As US News highlights, the NAR settlement has sparked a wave of innovation, from transparent fee structures to tech-driven tools. By 2026, experts predict more buyers will blend PropTech with traditional agent relationships, creating hybrid strategies that maximize value and efficiency.

For first-time buyers, the message is clear: you don't need a vault of cash to win. The new commission rules empower you to negotiate smarter, leverage technology, and align with service providers who prioritize your needs. In Michigan, Florida, and beyond, the market is no longer just for the cash-rich. Explore commission calculators, connect with flexible agents, and craft offers that compete with confidence. Your home is within reach go claim it.

Frequently Asked Questions

How can first-time buyers compete with cash offers after the NAR settlement?

The NAR settlement has given first-time buyers new leverage by allowing them to negotiate commission fees and choose à la carte services, freeing up thousands of dollars to strengthen their offers. By combining underwritten pre-approvals, larger earnest money deposits, and shortened closing timelines through PropTech tools and lender partnerships, financed buyers can now craft offers that rival cash deals. Strategic use of "cash offer" mortgages and bridge loans can also mimic the speed and certainty that sellers seek.

What are the real benefits of the new real estate commission rules for home buyers?

While overall buying costs haven't dropped dramatically, the new commission rules give buyers the power to negotiate fees and select specific services rather than paying for full-service packages. For example, on a $300,000 home, reducing a buyer's agent commission from 3% to 1% saves $6,000 that can be redirected toward a stronger down payment or closing costs. Buyers can now hire agents for targeted tasks like contract review or market analysis, maximizing value while minimizing expenses.

What PropTech tools help first-time buyers move faster than cash investors?

Real-time market alerts through platforms like West Edge Realty and Real Estate One allow buyers to act swiftly on new listings, while MLS access and commission calculators provide transparency on costs and market trends. "Cash offer" mortgages from institutions like Lake Michigan Credit Union guarantee rapid closings, and bridge loans help buyers access temporary funds quickly. These technology-driven solutions help first-time buyers outpace institutional investors who traditionally dominate fast-moving markets.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

You may also be interested in: Side Door