It seems if you want to buy a Minneapolis duplex these days, you might need to have a large daily limit on your ATM.
That’s because to a duplex seller, cash is like betting on a sure thing.
Many of the best duplex properties coming on the market generate a lot of buyer interest, and are getting multiple offers.
And when it comes to choosing a low all cash offer, or a higher offer that requires the buyer to get a loan, many duplex sellers are choosing to take less money now.
That’s because to a Minneapolis duplex seller, cash offers are sure to come through, while a financed offer is a maybe.
In a seller’s mind, there are all sorts of things that could go wrong in the process of a buyer obtaining a bank loan.
For example, a furnace might fail an inspection, which would mean the buyer’s lender would refuse to finance the property, cancelling the sale.
Or, an appraisal might come back lower than the purchase price, resulting in the seller possibly receiving less than even the cash offer they have in hand; all due to a single appraiser’s opinion of value.
An offer from a cash buyer can typically close in a matter of days or a week.
Financed buyers, on the other hand, usually take more than a month. This is due to the bank’s requirements for documentation of a buyer’s income, as well as obtaining an independent opinion of value from an appraiser.
To many duplex sellers, especially banks, this is not a sure thing. And they simply want to bet on a buyer who is.