Fred Griffin, Tallahassee, Florida Real Estate Broker nailed it. And although those buying in Sullivan County, New York may think it's still a very strong buyer's market, we are off the lows. The darker days of no buyers is giving way to: "Hi Janey, I'd like to put an offer in for 1234 Party Lane right now." The reply is: "Well thanks so much John, but we've got a couple of offers my seller is mulling over."
Take a look at these 15 sure fire reasons for offer failure. Then, contact me to engage the process. And if you need a super broker in Tallahassee, give Fred a jingle.
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.
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!
Disclaimer: The author of this blog article is not an attorney; the author of this blog article is not a certified public accountant. Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.
Frederick Griffin, Licensed Real Estate Broker, Tallahassee, Florida 850-339-4861