Thursday, April 16, 2015

Home Buyer Tips: Why was my offer not accepted?

It is becoming increasingly more common to see multiple offers in the current Brevard County, Florida residential real estate market.  And when a prospective buyer's offer is not accepted they often turn to their agent and ask "Why?"

However, until a real estate transaction closes the likelihood of knowing anything about the other offer will be slim.   And once the transaction closes the specific terms of the deal will probably not be known as the recorded transaction will reflect only a selling price, and recorded mortgage, if any (and possibly any seller concessions if the listing agent records it in the MLS system).

So even when the dust settles the"why" may never be known.   However, any likely explanation could involve one or more of the following items.
  • Price.  Yes, this is the first place to look.  After all, when the dust settles it almost always price.  While many believe cash talks, so does a mortgage when the buyer is well qualified. 
  • Closing date.  Sellers have a time line.  If they want to close in a month then an offer that wanted to close in sixty days may not be acceptable.  
  • Closing cost assistance.  Although a price offered may be higher, asking the seller to throw in 3% for closing cost assistance may not be looked upon as favorable.   Offering full price may not be full price after the appliances are thrown in or closing costs are contributed. Its the net price - not necessarily the price on line one.
  • Contingencies.  The normal inspection and appraisal contingencies are expected by most sellers.  But a contingency so your spouse can travel to see the house in a couple of weeks may not be looked upon favorably. Likewise, a contingency so a buyer can sell their current home may not be very attractive either.
On the other hand I have had my buyers, once an offer is accepted, ask me if the seller would have taken less?  I can only assure them of one thing - if I knew a seller would take less then I would have recommended we offer less!

As a buyer consider this... Offer what you are willing to pay for a property under terms that fit your circumstances, budget and needs.    And if the offer is not accepted or countered, move forward.

Ready to buy or sell a house in Melbourne, Florida?    Call me at 321-693-3850.  I want to help if I can in any way!