Why reject purchase offers? It’s probably not much of a thought right now or perhaps it’s just happened and you’re searching for answers. The fact of the matter is, about 10 percent of all residential real estate deals fall through. And, this occurs for several reasons. But, when it comes to purchase offer rejection, it’s the seller who is the culprit. So, let’s take a look at why some sellers turn down purchase offers from eager buyers.
How to Make Purchase Offers Stand Out
Before we get into the reasons for rejected purchase offers, let’s first quickly visit how to make these stand out. It’s not that difficult (except you’ll have to put emotion aside and be pragmatic). However, it does require a marked resolved to make it work for you. When you submit a purchase offer, it should be a strong one (read: a reasonable, on-point price). Also, it shouldn’t contain a bevy of contingencies.
“Once you’ve decided on the home you want to buy, your real estate agent or attorney will draft a purchase offer in your name. The offer is submitted to the seller’s agent, or directly to the seller when it’s a “for sale by owner” (FSBO) listing. The seller can respond in one of three ways: accept the offer, counter the offer, or reject it.” —Home Finder.com
You should also be able to demonstrate that you are serious and have the financing to see the deal through. Additionally, it should not ask too much of the seller’s schedule. Moreover, it ought to convey that you’re genuine and willing to negotiate. Basically, go in with a strong purchase price, be ready to negotiate, and willing to make certain accommodations. Keep in mind, it’s ultimately got to serve up a win-win scenario for you, the buyer, and the seller, as well.
Common Reasons Home Sellers Reject Purchase Offers
Now, if you’ve been in the unenviable position of having a purchase offer rejected, you’re probably wondering why it happened. Sure, you might already been given an ostensible reason but it might not serve as a satisfying explanation. So, here are the most common reasons home sellers reject purchase offers:
- They receive a better purchase offer. Typically, your purchase offer contains a deadline which requires the seller to accept by a certain day and time. But, if the seller receives more than one offer, it’s possible another offer is more attractive. So, the seller simply lets yours “expire.”
- The seller dislikes the long escrow timeline. You might need more time to sell your current property or have another reason for a long escrow period. That’s fine for you but it might be too long for the seller and they reject your offer.
- They believe the purchase offer is too low. This is an obvious one but a reason that comes with a bitter pill. It’s usually the result of being a bit too frugal and trying to get the best deal possible. Remember, there’s another party to the transaction who wants fair treatment.
- The sell is overwhelmed by the many contingencies. While you might be trying to protect your own interests, there is something as too much. If you ask too much from the seller, you might sabotage the deal before it really begins.
- They are confident you don’t really have the financing. Of course, if the seller doesn’t feel comfortable with your financing situation, they might reject your offer out of an abundance of caution.
If you are considering buying or selling a home in Orlando, contact us for the latest market information. We’ll also provide you with the right advice about the local real estate market so you make the best decisions.