House #39 – In Escrow/With Multiple Offers

If you have been following the blog for a while you might know that House #39 was a high end fire damaged property we bought in April.  We did a pretty solid rehab and where WAY over budget (in case you where wondering). After about two weeks on the market we have 5-6 verbal offers (lower offers) and three pretty serious parties interested in the house.

Offer #1 – Was a real estate agent who just got married and a very nice guy.  He knew the area well and was wondering if we could work a deal before he went on a two week European vacation.  My partner and I gave him our bottom line number and told him they had to waive the appraisal contingency and  close within 30 days.  They considered it seriously, looked at the property again and decided they would wait until they came back as they wanted us a bit more flexible on price.

We told them our strategy that if we did not get an offer we would be lowering the price and if he wanted to pay less waiting was his best option.

Offer #2 – Was a young couple that was going to have a family member gift them 50% down-payment on the house.  We where really close to working with them and had verbal approval.  The main sticking point was we required an appraisal contingency removal to move forward.  They initially agreed but after doing some further research decided they would agree to everything but an appraisal contingency removal.  Since they initially agreed and changed their mind this really rubbed me the wrong way and I decided to stop all negotiations.

Offer #3 – Is a successful business man and his wife.  The agent called before they sent in their offer and I told them we where in serious negotiations (with Offer #2).  He put a good sized non-refundable earnest money deposit down and removed the loan contingency from the start.  I let the offer sit for a while because I thought we would be picking Offer #2 that had a better down payment, but once they backed out we got to negotiations.  The Buyer liked the house a lot and was willing to pay over appraised value if required but had a small hitch.  He wanted to use an FHA loan if possible.  To be honest I wasn’t real excited about this, but I talked to his lender at length and felt comfortable moving forward.  His loan contingency was removed, so what do I have to loose?

The appraisal did have a small issue, but the lender was able to challenge it and get it fixed.  It originally came in at our contract price, but the appraisers boss reviewed it and cut it, they challenged it and it got moved back up.   Our Home Inspection went pretty much flawlessly.

At this point the Buyer has removed all contingencies and we should be closing late next week if everything goes as planned.

This is my favorite house we have done so far.  I would happily move in it, but at this point in life I don’t need a 3,500 sq ft house.  The Buyer is getting good value for their dollar too, these have come down a  lot.

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One Response to “ House #39 – In Escrow/With Multiple Offers ”

  1. […] Rehabbing Homes: Choosing Among Multiple Offers Posted by: mandy | Category: Flipping Houses, Real Estate Investing, Rehabbing Houses […]

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