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A modification or revision to the executed [Purchase And Sale Agreement](https://www.offermarket.us/real-estate-glossary/purchase-and-sale-agreement) (the "Agreement") where the Parties (Buyer and Seller) agree to change one or more terms of the sale. This is common after an inspection or in the event there is a delay that prevents the transaction from closing by the original Close By date.

An addendum is a modification or revision to the executed Purchase And Sale Agreement (the "Agreement") where the Parties (Buyer and Seller) agree to change one or more terms of the sale.

Addendum - Real Estate Glossary - OfferMarket

What is an Addendum in Real Estate?

Real estate auctions are a way to sell your property without additional price negotiations at the end. Its a price discovery mechanism that is often used by homeowners, banks, governments and builders. Auctions often have a higher chance of selling a property within a given timeframe. When auctions happens, the property (if listed without a reserve price) will go to the highest bidder on that day. This way some homeowners sacrifice extra price discovery mechanism, such as negotiations, to get extra expediency during the sale of their property. 

 

Each typical part that participates in real estate auctions have their own motivations for doing so. Governments auctions off property when someone fails to pay their taxes. Homeowners might auction off a property in bad shape. Builders might sell a portfolio of properties at the same time. 

 

The most common types of real estate auctions are listed below:

 

1. A Reserve Auction. The seller has a price in mind which if not reached he isn't obligated to sell his property. Its not known before auction starts. 
2. A Minimum Bid Auction. A minimum price below which the sale won't happen. Its known before auction starts. 
3. Absolute auction, or no reserve auction. Highest bid wins no reserves or minimums.

Real Estate Auctions are ways of selling and buying real estate properties. The main difference in auctions is that there is not post bid price negotiations.

What are Real Estate Auctions?

## What is a Cash Backed Offer?

 

A cash backed offer means the buyer's offer is guaranteed by a [power buyer](https://www.offermarket.us/real-estate-glossary/power-buyer) and therefore there is no financing contingency and reduced appraisal contingency risk.

 

A buyer who submits a cash-backed offer is working with a mortgage lender, usually the power buyer, to fund the purchase of a property. If there is a delay or financing falls through, the power buyer steps in and purchases the home in cash on behalf of the buyer and works with the buyer after the transaction to secure a mortgage on the property.

 

This empowers the buyer the ability to make what is effectively a cash offer, significantly increasing the probability of the offer being accepted.

 

[Power Buyer](https://www.offermarket.us/real-estate-glossary/power-buyer) services enable these cash-backed offers to help home buyers provide a superior offer and get their offer accepted. 

 

## Cash Backed Offer Financing Contingency

 

With a cash backed offer from a power buyer, the buyer can submit an offer without a financing contingency. This give the buyer an advantage because an offer without a financing contingency is more attractive and desirable to the seller.

 


## Cash Backed Offer Appraisal Contingency

 

With a cash-backed offer, the power buyer can assist the buyer in the event the appraisal comes in lower than the purchase price in the contract. The power buyer can help bridge the appraisal gap by reducing the buyer's closing costs. This increases the probability that the transaction will close successfully without significant delays.

 

## The Rise of Power Buyers and iBuyers

 

- [What is an iBuyer?](https://www.offermarket.us/real-estate-glossary/ibuying)
- [Mike DelPrete Research: Power Buyer, iBuyer](https://www.offermarket.us/blog/mike-delprete-research-ibuyer-power-buyer)

Through cash-backed offers, power buyers  provide buyers the ability to make what is effectively a cash offer, significantly increasing the probability of the offer being accepted.

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Cash-Backed Offer - Definition - OfferMarket Real Estate Glossary

Cash-Backed Offer

#### What is a SFR? 🏠

 

The abbreviation SFR stands for single family residence. SFRs can include the following housing types:

 

- Detached home
- Townhome

 

#### Are SFRs a good rental property investment?

 

SFRs -- much like duplexes, triplexes, quadplexes and multifamily -- can make a great investment. As with any investment, it all depends on the quality of the asset, the purchase price, and the local market conditions. Here are things the most successful single family rental property investors focus on:

 

- [Cap rate](https://www.offermarket.us/real-estate-glossary/cap-rate-capitalization-rate)
- [Cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return)
- [Free cash flow](https://www.offermarket.us/real-estate-glossary/free-cash-flow)
- Construction (year built, materials used, building quality)
- Local market trends (population growth, housing market appreciation, supply and demand)

 

The single family rental property asset class has grown tremendously since the 2008 subprime mortgage financial crisis with the likes of Blackstone (Invitation Homes), and American Homes 4 Rent each owning more than 50,000 detached single family homes in their portfolios.

 

#### How do I find SFRs for sale?

 

The availability of quadplexes varies based on the local market. Here is where you can find your next quadplex investment property:

 

- Zillow
- Redfin
- OfferMarket
- Facebook Marketplace
- Craigslist
- Local wholesaler [buyer's list](https://www.offermarket.us/guides/real-estate-wholesaling-how-to-build-a-buyers-list)

 

#### Related concepts:

 

- [SFR](https://www.offermarket.us/real-estate-glossary/sfr)
- [Duplex](https://www.offermarket.us/real-estate-glossary/duplex)
- [Triplex](https://www.offermarket.us/real-estate-glossary/triplex)
- [Fourplex](https://www.offermarket.us/real-estate-glossary/fourplex)
- [House Hacking](https://www.offermarket.us/real-estate-glossary/house-hacking)

An SFR is a single family residence. This is either a detached house or a townhome. There's more to learn about SFRs at OfferMarket.