As I discussed in a previous article, investors have become a significant factor in the current market environment. Investors generally have fewer contingencies and shorter time periods for processing the escrow. Therefore, they have traditionally closed escrows with fewer complications though having generally paid less for the property. Today, however, we find increasing numbers of all-cash buyers, and often the developer-investor actually pays a premium in order to succeed in outbidding all other buyers, reflecting the need for properties in their inventory to build on.
There can be numerous advantages to a seller to receive offers from developers. For example, a developer is often able to provide a quick and easy closing of escrow, even as short as 10 to 15 days. They are also more flexible in the time that they need to take possession of the property.
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