Roofstock Property Purchase Day 41: Seller Response to Counter Offer
It looks like we were finally able to get a response from the seller. This was 12 days after the original counter offer at the appraisal price was sent.
The seller contacted Roofstock and notified them that he was not accepting the counter offer and terminating the contract. This was disappointing because I would have basically accepted any counter offer since the numbers would still have worked well within the available pricing spread (i.e. from the appraisal value on the low end all the way back up to the originally agreed upon price on the high end).
This property would have been a great first property as it cash flowed very well. The final numbers were as follows should the deal have gone through, with the cash on cash ranging from 11-15% depending on what the counter offer would have been with $400+ profit per month:
This definitely not the ideal outcome, but out of the original $3300 that came out of pocket, I was able to recoup $2475 of that. Both Roofstock and my loaning bank gave me back my initial "non-refundable" deposit, which was a "tip of the cap" to both of them.
Looking back on the property, even though I projected that the appraisal would come in at a lower price, I should have factored in that it was unlikely that the seller would accept that price since there was such a discrepancy between the listing and the appraisal prices.
Overall, my Roofstock experience was generally positive. I'll list the pros and cons in the next post.