Well, I guess 7th time is a charm for us. After 6 failed offers, we finally received notice that an offer was accepted. We put in a cash offer with a quick close (2 weeks). Tomorrow we have the inspection and will start getting quotes for different pieces of the work. I'll give more details about the place once it is officially ours, but needless to say these next two weeks will be action packed.
The frustration of the search
I'm starting to realize how competitive this business really is and that when our first offer was initially accepted it was the exception rather than the rule. In a little over a month we have submitted 6 offers and analyzed many more than that. 4 of these offers have been rejected or we've been outbid and we are currently waiting to hear back on 2. We're at a disadvantage because we are submitting offers that are contingent upon lender financing, which means anyone who puts in an all-cash offer is automatically more attractive for a few reasons: because sellers don't have to worry that the buyer's financing will fall through at the last minute and because closing can happen much quicker with all cash offers. Currently banks are recommending a 45 day close in order to complete all the required paperwork and due diligence (i.e. appraisals, government-required waiting periods, etc.). With all-cash offers there is none of that and closing can happen immediately after the inspection/attorney review (typically 5-10 days after the offer is accepted). It's possible that we are losing out to investors that are putting in all-cash offers that are lower than our lender-financed offers. So, we're getting ...
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