You
found your Dream House! After weeks of looking at houses, this is it! Your
Agent prepares an offer; you sign it. But wait - oh, No! Your Offer has been
Rejected!
15 Ways
to Get Your Offer Rejected
1.
Offer Price is Low!
This is the first thing that a Seller looks at when in an Offer comes
in! If you believe that a Lower Price is justified, have your Agent present
some comparables or an appraisal to back up your offer.
2. Fail
to understand your Local Market
Is it a
Buyer's Market, a Seller's Market, or just a Market? Look at actual sales data,
including time on market, inventory (number of houses for sale), and sales price
to list price ratios.
3.
Fail to understand the Seller
Moving out of
town, moving up, investor unloading an asset, bank owned, short sale,
Court-ordered sale... does your Agent know the motivation or reason of the
Seller?
4. No Pre-Approval Letter or Proof of Funds Letter
Is the
Seller supposed to wait a week or two to see if you can afford it?
5. Ask Seller to
Pay All Closing Costs
Asking the Seller
to pay $$$ Thousands of Dollars in Costs is effectively lowering the
Price!
6. Low or No
Deposit
In some States
(including Florida) there is no monetary deposit required.
Your "promise" is considered valuable consideration. But how do you think those
Goose Eggs on the Deposit Line look to a Seller?
Or maybe you
presented a whopping $500 or $1000 deposit. The strength of your Offer
is reflected in your Deposit! Even with a 100% USDA Rural or 100% VA
Loan, you should still offer a significant deposit.
7.
Contingencies
Financing and
Inspection contingencies are common and expected. But for how long? Five days
looks better than 14 days or 21 days!
Other
Contingencies can be detrimental to an offer. For example, "Buyer's Home Must
Sell First".
8. Asking for
Personal Property
The Seller has volunteered to leave the light fixtures, window
treatments, and the appliances. You decide to ask for the Pool Table, the Flat
Screen TV, and the Furniture.
8. Closing
Date
The Seller
has already moved out. Your Offer shows a Closing Date several months
from now.
9. Asking for
Repairs
Especially
before Inspections have been done! Or, when the MLS Listing reads, "As
Is, Subject to Inspections".
10. Trying to Get
a Deal on a Foreclosure
Forget it!
The hucksters on those "Get Rich Quick in Real Estate" Infomercials are either
in prison or under indictment.
11. Asking for
Early Possession
There is a lot of
risk and potential liability for a Seller who allows Occupancy Prior to
Closing.
12. "Creative
Financing"
Asking a Seller
(who has not volunteered) to carry Owner Financing, or asking a Seller to do a
Lease Option or Lease Purchase, or a Contract for Deed, or other "Creative
Financing".
13. Ignoring
Seller Requests
Seller has made
specific requests in the MLS Listing (preferred Title Closer, length of Closing,
days for Acceptance, etc.) and your Offer blatantly disregards those
requests.
14. Not
Understanding "Multiple Offers" if you are in a Hot
Market
If you are in a
Market where Multiple Offers are typical, you MUST come in with your Best at the
very beginning! A low-priced, contingency-filled offer will not warrant a
second look!
15. Your Offer is
Never Presented (yes, it happens)
It may be
illegal and/or unethical, but sometimes Agents do not present Offers!
- Your Agent may be "embarassed" over your Low-Ball Offer, so he pretends it was rejected.
- An unethical Listing Agent has multiple Offers; she only presents the Offers that will net her both sides of the commission!
It is up to you to verify that your Offer was presented!
Every Real Estate Market is different, every Seller and every Property will be
unique. But the same general principles apply. A Buyer must present an Offer
that is attractive to the Seller.
Don't do any of the 15 Things that will get Your Offer
Rejected!
___________________
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