Few things can be as nerve-racking as submitting an offer on a home you have fallen in love with. Coming up with that magic number that is low enough to satisfy you, but not so low that you are rejected can make you want to pull your hair out, especially when you really want the home. There are a number of reasons why a seller rejects an offer, but keeping these three tips in mind before you submit an offer will go a long way toward making sure your offer is accepted.
Presenting a seller with an offer that is way below the asking price may seem like a good negotiating strategy if you want a good deal, but this is one of the top reasons offers are rejected. Too low of a price may be taken as an insult to a seller causing them to reject your offer instantly. Sometimes it is perceived that the buyer could not be serious when the offer comes in too low, and that can cost a buyer their credibility and get their offer rejected. In some states, a seller does not even have to respond to an offer below the listing price, and if a home has just recently been put on the market, many sellers will not even consider it. Do your research and offer a fair price for the home if you want a seller to entertain a below list price offer.
Not contacting the listing agent before you present your offer is another big reason for rejection. Sellers may have specific needs or contingencies that must be met for them to sell. Perhaps they will require a long escrow period or even a cash settlement. Whatever their needs are, make sure that your real estate agent contacts the listing agent to see if there are any specifics that you could address in your offer. If they require a long escrow, present the offer with a longer closing date. Keep in mind that a seller is more likely to consider an offer from a buyer who is ready to go; earnest money deposits and a prequalification letter from a lender are a good way to separate yourself from other offers on the table. Making sure you meet the seller’s unique needs is a good way to make sure your offer is accepted.
If you think that your real estate agent is unprofessional, then chances are others do too. Believe it or not, a lousy buyer’s agent is a big reason why many offers are rejected. If you find yourself dreading having to deal with a real estate agent who is loud, or obnoxious, or otherwise unpleasant, then you should remember that this is the individual that will be representing you to the seller. If a listing agent has two identical offers, and one of them is from a real estate agent who is easy to work with and your real estate agent is not, chances are the one that will be presented to the seller with more enthusiasm will not be yours. Make sure that you have the right representation when submitting an offer will help make sure your offer is accepted.
Making an offer on a home is an exciting experience. By taking the time to strongly consider your offer, present a fair price, meet seller’s needs, and acquire good representation, you can increase the chances of having your offer accepted.
Want to find out if you have what it takes to be a Real Estate Agent or Broker?
About Geoff Thompson — Geoff Thompson is an Owner and Founding Partner of Express Schools, LLC. which operates online education providers Real Estate Express, Insurance License Express and License Tutor. Follow him on Twitter.