“Our Offer was Higher than the Offer that was Accepted”
Hi Joe!
After putting in an offer on a 3-unit multi-family home and not getting our bid accepted we wanted to further understand why it wasn't accepted. There was one other bid. They accepted this offer on the basis that it was a Conventional Loan. Our agent told us the other offer was more appealing to the seller because they believed the turnaround time to close the loan would be quicker on a conventional loan and no inspection would be required. The other offer went in at asking price...we went higher than asking price. Help me understand?
How is it in the sellers’ best interest to accept an offer for thousands less that what another buyer would pay? There are so many misconceptions about FHA mortgages. There is no such thing as a home inspection is required for an FHA loan and not for a conventional loan, this is BS. It is not a requirement for either loan type. As a lender I would never recommend that a home inspection not be done. A home inspection is a damn going idea!
There are many homeowners that will they had a home inspection done, but for one reason or another were either talked into not having one done and now they are paying dearly for making the offer without one.
Let me address time periods to get a conventional loan done compared to an FHA, most times it is the same.
In this situation, it cost the seller thousands of dollars to accept the buyer that will be doing a conventional loan, not the greatest of decisions.
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