Pat Starnes Snippets: FAQ ~ Why Wasn't My Offer Accepted?

FAQ ~ Why Wasn't My Offer Accepted?

You found a house you love and want to make an offer. You discuss price, terms, etc., with your Realtor, write the offer, and mentally start making plans for the future.

The next day, your Realtor tells you another offer was more favorable, and you lost the house. 

What went wrong?Q&A Laptop Image

You may be shocked, disappointed, or angry. A number of details could have prevented your offer from being accepted. Following are five reasons your offer might be declined.

 

The amount offered was too low

While it's understandable you want to purchase the house at the best (aka lowest) price, the seller wants to get the highest price possible, usually with the least amount of time on the market. In a hot market, it isn't realistic to low-ball your offer. If an offer is too low, the seller might be insulted and not even consider your offer. Your buyers agent will prepare a market analysis (CMA) to determine the value of the house. Use the CMA to determine a reasonable offer on the house of your dreams.

 

Terms weren't acceptable

Besides price, other terms like closing costs, prepaid items, inspection contingencies, contingency on the sale of another property, etc., are a consideration.  The stipulation of certain conditions can make your offer less attractive.

 

No loan commitment from a reputable lender

Before you begin your home search, and certainly before making an offer to purchase, meet with a qualified, reputable lender to determine what you can afford. The lender will determine your purchasing power based on your income, credit, and down payment, among other factors. All lenders are NOT created equal. Get a recommendation from your buyers representative to ensure your lender is knowledgeable in your area, familiar with local regulations, and well respected.

 

Another offer was more favorable

It's possible that another offer was submitted after yours that the seller accepted or countered. Even if your offer was submitted first, the seller is still free to accept or review other offers until the time you have a signed, sealed, delivered contract. Many buyers don't understand that the seller is within their rights to do this. 

 

An unacceptable closing date 

In most cases, though not all, the seller wants to close as soon as possible. If the house is vacant, they probably wanted to close yesterday. If you can set the closing date to accomodate the seller, that may make your offer more appealing than a lengthy due diligence period.

On the other hand, a delayed closing might be more favorable. I ask the listing agent the sellers' preference before submitting the offer. The answer could make the difference between an accepted or rejected offer.

 

There are other reasons your offer might be rejected. Discuss all the terms and conditions of your offer with your Realtor. Be realistic and consider our expert advice.

If you have questions about the home buying process, I'm happy to meet with you.

 

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Written and Published by Pat Starnes REALTOR

Join ActiveRain for Free - Pat Starnes   facebook   google plus   twitter   linkedin   pinterest

Pat specializes in Residential and New Home Sales 

Primary Service Area:

Brandon, Pearl, Ridgeland, Flowood, Madison and the Ross Barnett Reservoir area

 Pat Starnes, Broker Associate

Front Gate Real Estate, 6700 Old Canton Rd., Suite C

Ridgeland, MS 39157

601-991-2900 - Office

601-278-4513 - Cell

 

Recent Blog Posts by Pat Starnes:

 

Greenfield Station in Brandon MS Continues to Grow

Six Easy Tips to Save Money on Your Home Inspection

Should You Consult a Realtor When Buying New Construction?

Homes for Sale in Scottish Hills ~ Brandon MS 39047

Homes for Sale in Hidden Hills Subdivision, Brandon, MS 39047

Homes for Sale in Castlewoods Subdivision, Brandon, MS 39047

Gardens of Manship Neighborhood Information - Brandon, MS 39047

 

Are you looking to buy or sell a home in the Brandon MS market? Call me!

Comment balloon 4 commentsPat Starnes-Front Gate Realty • June 15 2017 02:32PM

Comments

Pat those are all good reasons why an offer would tank.  Buyers need to follow the advice of their Realtor to give their offer the best opportunity to be accepted.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 2 years ago

You have outlined some of the more critical reasons that offers aren't accepted, Pat!  

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 2 years ago

CONGRATULATIONS Pat, on having this blog FEATURED in the Old Farts Club group!    

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 2 years ago

Thanks Myrl Jeffcoat. I had to do 3 or 4 FAQs yesterday to get them all in by the deadline. :) Thanks for the feature.

 

Posted by Pat Starnes-Front Gate Realty, 601-991-2900 Office; 601-278-4513 Cell (Front Gate Real Estate) about 2 years ago

This blog does not allow anonymous comments