Take a low ball cash offer on a flip (still profitable) or wait

[Jake Adams]

Rehab is completed on a flip and has been on the market at the current list price for 6 days. Received a cash offer that will close in 2 weeks. List price is $625K and the offer is at $580K. Obviously a low ball because comps show $625K-650K. The cash offer is enticing and closing quickly would be great so I can move on to the next project, but it cuts my profit over 60%. Profit at $625K sale price would have been around $70K and at the current offer profit is about $26K. 

I will still send a counter, but if I don't get it accepted would you consider accepting at the current offer price of $580K to move on? Last thing I want to do is reject this offer and then be stuck having to lower the price over the next few weeks and end up where I am currently, prolonging the inevitable...

Thanks in advance

[Katie Neason]

Couple of thoughts. If you have a good realtor they should be able to get recon/feedback on where the buyer and where they are at. 

For the 6 days it has been on the market, what has the activity been like? Have you or your realtor been getting feedback from the people looking? 

What is the average days on market of your comps? Also look back at the comps from this time last year. What was the price and days on market? Time of year can be a killer in some markets. 

With this info you should at least be able to make an educated decission.