Rejected offers can result in major stress and problems for home buyers. An answer of “No” from the seller or their agent is all that it takes for your purchase offer to be declined. This may be the 3rd or 10th home you’ve made an offer on in Orange County’s competitive market. So, the home buying process continues but you should learn the reasons why your offer was not accepted to be successful next time.
The following are the four main reasons purchase offers are not accepted.
Declined Offer Reason #1: Your Price Is Far Too Low
1. Sellers can easily feel insulted or angry and turn down the offer instantly.
2. If a buyer offers a very low price, the seller might feel the buyer is not qualified or not serious.
3. If the house was just listed in the last seven days, the seller might think it’s too early to consider and counter an offer that is well under list price.
Reason #2: Selling Agent Is a Jerk
Buyer’s agents who have a reputation as hard to deal with could make the listing agent and buyer’s life miserable while under contract. If the selling agent (buyer’s agent) irritates or bothers the listing agent, particularly while in a multiple offer situation, it shows the buyer’s agent in a bad light. Be certain that your agent isn’t a person who does the following:
- Uses an aggressive tone of voice on the phone or in person.
- Doesn’t say please or thank you when communicating ever or rarely.
- Does not exhibit a level of professionalism towards other agents.
- Insults the listing agent by labeling them as stupid, inexperienced or incompetent.
- Maintains an attitude of being superior.
When the listing agent has two identical offers to present to the seller they could say, “The Agent for offer number one is difficult to deal with, and the Agent for offer number two is professional. Which offer do you want to consider?” Most sellers given this information will go with offer number two.
Reason #3: Offer Did Not Fulfill Seller’s Specific Needs
Selling agents should always review the agent remarks in the listing. If they are items you buyer can satisfy, don’t forget to put them in the offer.
1 .If the seller needs a 60 or 90-day escrow period, offer a closing date that works for the seller.
2. If the seller requests a sizeable earnest money deposit, add that into the offer.
3. In some cases, the listing mentions the seller will only accept all-cash offers, so don’t write an offer with financing contingencies or it will probably be declined.
Reason #4: Your offer was too high
Let’s say the seller receives multiple offers that are over list price of $750,000 for a home in Orange County. The first offer was $15,000 over list price. The second offer was $30,000 over list price. The third offer was $55,000 over the list price using an escalation clause. While the higher third offer was attractive to accept, the agent explained that the home is not likely to appraise for $805,000.
This meant the buyer would have to bring in an additional $55,000 beyond their 5-percent down loan and closing costs. It was later discovered the buyer from the third offer did not have extra funds and would rely on the home appraising higher or receiving a gift. So, the seller chose the lowest offer of the three over list price because if the appraisal came in low that buyer did in fact provide proof of having an additional $15,000.
These are just some of the reasons among many why a buyer’s offer is not accepted. By working with an experienced buyer’s agent at HomeFinderOC.com, you can feel confident of your chances to securing the first homes you make an offer.