Negotiating Offer on my Fix & Flip -- Need Advice!

[Ken Sanders]

I just received an offer on my current fix & flip and I thought I'd run it by the BP crowd. Here's the scoop:

1. House has been on the market for three days and has received one lowball offer in addition to the one discussed here

2. Offer is for full asking price with 3% seller assist

3. Buyer will make an initial deposit of $5,000 to be held in escrow

4. Mortgage Contingency:

Loan Amount: full asking price (100% financing)

Minimum Term: 30 years

Type of Mortgage: VA

LTV Rate not to Exceed: 45%

Interest not to Exceed 4.5%

They are pre-approved for 100% VA for $40k over sale price (no mention of interest rate)

5. Mortgage Commitment Date: 7/14/2015

6. Closing Date: 7/28/2015

7. Seller purchases home warranty

8. Home, termite, & radon inspection contingencies

9. Current home sale contigency -- Their current home is under contract and enters inspection period on Monday

I'm worried mainly about two things:

First up is the appraisal. As this house is now the best in the neighborhood and their offer states that they get their $5k returned to them if the property doesn't appraise per the VA/FHA language. I fear I won't be compensated for lost time if it doesn't appraise.

The second thing I'm wary of is the contingency on the sale of their current home. I've never dealt with this situation before (luckily!), and wonder how common it is for these deals to fall through. A million things can go wrong with one real estate transaction, let alone two back-to-back.

Anything else I need to freak out over?