What Do You Mean My FULL PRICE Offer Wasn’t Accepted?
I was recently contacted by an agent who submitted a full-price offer on one of my listings and their client wanted to know why their offer wasn’t accepted. It is important for buyers and agents alike to understand a full-price offer doesn’t automatically guarantee seller acceptance, especially in a multiple-offer situation.
While many sellers initially focus on the offer price they will eventually look at the secondary terms, where there could be one or more deal-breakers for them, such as a request for seller concessions. So while a full-price offer may be a great start the secondary terms should be given just as much thought, if not more. Let’s take a closer look at why sellers reject full-price offers.
5 Reasons a Full Price Offer Wasn’t Accepted
In a real estate offer, aside from the price, numerous other terms come into play, and it’s often these secondary terms that could be the reason a full-price offer wasn’t accepted. Here are the top 5 reasons why your full-price offer might have been rejected by the home seller.
Proof of Funds
Are you paying cash or getting financing? Prior to writing an offer, you need to be able to answer this question. In fact, you should have proof of funds in writing ready to go prior to looking at homes for sale. If you’re obtaining financing you need to know what loan program and how much money you will be putting down. Without this information, you won’t be able to submit an offer.
Seller Concessions
Are you asking the seller to contribute money towards your closing costs? If so it’s important to know offering full price and asking for a 3% seller contribution isn’t technically a full price offer to the seller. While you are paying the full price, the seller will not be netting the full price.
If the asking price is $200,000 and you offer $200,000 with a 3% seller contribution the seller is actually netting $194,000, not $200,000. If you need seller concessions know how much, don’t put 6% and only need 3%. Not only will you be financing 3% more than you need to that unused 3% will go directly into the seller’s pocket. However, a seller can only assume you will use the entire 6% and will base their decision on that information.
Escrow
How much are you putting in escrow and when? Submitting an offer with little to no money in escrow won’t instill confidence in the seller that you can actually afford to buy their home. The average escrow deposit is usually around 2%-3% of the purchase price. In a hot market, it’s not uncommon for buyers to put down 20% or more.
Contingencies
What type of contingencies are included in your offer and how long are those contingency periods? The more contingencies you have the more likely your offer will be rejected by the seller. The same holds true for how long your contingency periods are. You never want to ask for more time than you actually need to clear contingencies.
Common contingencies in a real estate contract include an inspection contingency, a mortgage contingency, and an appraisal contingency. While not-so-common contingencies may include a home sale contingency or attorney review contingency. It’s important for buyers to only ask for contingencies and contingency periods they actually need.
Closing Date
When do you want to close and is this date flexible? Ideally, you’ll want to find out ahead of time when the seller would like to close and try accommodating their schedule. By doing so that could be one less thing to negotiate or a possible reason to lose out to another buyer.
If the property you want to purchase is a short sale being flexible is a must and conveying your flexibility to the seller is just as important. It can take several months, even a year, for a short sale to be approved or denied and the seller wants to accept an offer from a buyer who understands the process and is going to stick around.
Final Thoughts
While offering a full price might seem like the golden ticket to securing your dream property, it’s important to recognize that there are numerous variables and secondary terms at play in any deal. Factors such as the seller’s motivations, market conditions, contingencies, and competing offers can all influence the final decision.
Instead of feeling disheartened by a rejected full-price offer, it’s essential to work closely with your real estate agent, adapt your strategy if needed, and stay resilient in pursuit of your dream property. Understanding these intricacies can help you navigate the real estate market with greater insight and ultimately increase your chances of success closing.
Please consider spreading the word and sharing; What Do You Mean My FULL PRICE Offer Wasn’t Accepted?
Unlocking the mystery of unaccepted full price offers: Explore the reasons and strategies for success in real estate negotiations. #realestate #homebuying #offerrejected #fullpriceoffer #homesforsalePopular Questions About Full Price Offers
What happens if my offer isn’t accepted? If your offer isn’t accepted, you have several options. You can choose to revise and resubmit your offer with improved terms or a higher price, if you’re still interested in the property and it’s still available.
Alternatively, you can continue searching for other properties that meet your criteria. Rejected offers are not uncommon in real estate, so if your offer is rejected try finding out why so you can learn from the experience and potentially revise your offer.
Can a full price offer be rejected? Yes, a full-price offer can absolutely be rejected. While offering the full asking price is often seen as a strong and competitive move, there are various reasons why a seller might still choose to reject the offer.
How do you tell a buyer their offer wasn’t accepted? If you have chosen to decline a buyer’s offer your real estate agent will let the buyer’s agent know. While you can provide a reason why it’s not required but can help the buyer moving forward.
Why would a seller not accept a full price offer? There are several reasons why a seller would not accept a full price offer. A few reasons include the buyer did not provide proof of funds, they had a low escrow deposit, asked for seller concessions, the number and type of contingencies, and/or the buyers desired closing day.
About the Author
Top Wellington Realtor, Michelle Gibson, wrote: “What Do You Mean My FULL PRICE Offer Wasn’t Accepted?”
Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell, or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.
Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres, and more.