4 Reasons Why Your Real Estate Offer May be Rejected
By Jim Olenbush
Are you getting ready to make an offer on the home of your dreams? If so, it is important to keep in mind that your first offer may not be accepted by the seller. While this is certainly disappointing, this doesn”t necessarily mean that all hope is lost. At the same time, by carefully creating your offer proposal and by avoiding these common mistakes, you can decrease the chances of having your offer rejected and you will soon find yourself moving into a beautiful new home.
Reason #1: The Offer is Lower Than the List Price
One of the reasons your offer may be rejected is because it is below the list price. This is not to say that you shouldn”t try to negotiate a lower price, but keep in mind that an offer that is too far below the list price will likely be rejected. If your offer is significantly below the list price, the seller might be insulted and may even think you are not a serious buyer. This is particularly true if the house has just recently come on the market, as sellers generally will not consider offers that are below list price at this point. In fact, in some states, sellers aren”t even required to respond to offers that are lower than the list price.
Reason #2: Problems with the Selling Agent
If your selling agent does not have good communication skills, it can also result in a rejected of your offer. More than likely, you wouldn”t hire a selling agent with bad manners in the first place. But, if your selling agent has a tendency to raise his or her voice, to make demands or to be insulting, you will probably have a difficult time getting any offer to be accepted. Even those who simply forget to follow basic manners, such as saying please and thank you, will reflect poorly upon you and can put you at a disadvantage if the seller has other offers that are identical to yours.
Reason #3: The Listing Agent Represents Another Buyer
If you live in a state where agents are allowed to represent both the buyer and the seller, your offer may be rejected because the agent wants the buyer he or she represents to close on the deal. This way, the agent enjoys a larger commission because he or she gets a commission from the sell as well as the purchase. Since agents will often give the seller a discount on the commission if he or she represents both parties, the seller will typically go with the other buyer in order to reduce the commission fees.
Reason #4: Failure to Meet Specific Needs
Your offer may also be rejected if you fail to meet the specific needs of the seller. In order to learn more about the seller’’s needs, it is a good idea to contact the listing agent before creating an offer. Some specific needs that sellers commonly have include:
* Needing a longer escrow period
* Requiring a larger earnest money deposit
* Wanting to only deal with certain payment or financing options
* Not wanting to deal with making repairs
* Wanting to sell to someone who has been preapproved for a loan
Of course, you will never know these needs unless you ask the listing agent. So, be sure to find out the specific needs in order to adjust your offer as necessary.
About The Author
Jim Olenbush is the owner of an Austin real estate brokerage. http://www.jimolenbush.com/ He manages a team of experienced Austin Realtors and they specialize in the Steiner Ranch Austin community. http://www.jimolenbush.com/steiner-ranch.htm
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