TOP FIVE REASONS WHY YOUR OFFER WAS NOT ACCEPTED
The real estate market in Durham Region is one of the hottest we have witnessed in years. Purchaser’s are recognizing the value in Durham Region. With limited inventory available and an influx of buyer’s many purchasers are putting in offers and wondering why they have not been accepted. Here are the TOP FIVE REASONS why your offer was most likely not accepted:
1. Your Offer Was Too Low
Coming in with a low ball offer in real estate is one of the most common reasons why your real estate offer was rejected. Buyer’s who want to submit low ball offers need to understand that their offer is likely to be declined. A low ball offer can be very insulting to a home owner, in many cases this is a home that holds substantial sentimental value. Your lowball offer just slapped the homeowner straight in the face.
Some buyer’s don’t realize they are submitting low ball offers and it’s likely because they are not being educated properly on the subject properties market value. Certainly the decision on what to offer a seller is completely at the discretion of the buyer, however, a top buyer’s agent should be able to advise the buyer on what similar homes have been selling for. If a home is priced well and a buyer wants to offer $50,000 less, just for the sake of trying to negotiate, the seller will often be offended.
Conditions play a significant role in whether or not an offer is accepted. Traditionally we will see offers with conditions for Financing and a Home Inspection for 5 Banking days. If you are competing against other purchasers, often these conditions will be removed or “tightened up” (reduced to 2 days instead of 5).
A seller wants their home sold for the most amount of money in the shortest amount of time. If you and your agent have included unnecessary conditions, this might raise a red flag for the seller. If competing against multiple offers, having fewer conditions or no conditions will significantly improve your chances of closing a deal.
A deposit must be received to the selling agent’s brokerage within 24 hours of acceptance of your offer. If your purchasing a home for $500k and are offering a $2000 deposit while another purchaser is offering a deposit of $30000, your offer will most likely be viewed as weak. What is the reason for a small deposit? Deposits play a very influential role as to whether or not your offer will be accepted. Have your agent discuss with you what an appropriate deposit should be.
Many seller’s have a closing date in mind when they put their home up for sale. This date might be very general such as 30/60/90 days from acceptance of an offer. Many seller’s have flexibility, while others have a more specific date. If you see an exact date such as June 9th, you should have an indication that the closing date might be an influential part of the seller deciding upon an offer.
Many seller’s have purchased a home or have other reasons for a specific closing date. If a seller would prefer a very quick closing for reasons such as a divorce or an estate sale, the purchase price might not be the most important criteria for accepting an offer. Closing dates play an integral role as to whether or not your offer will be accepted. Have your agent find out what closing date the seller would prefer.
A seller typically includes a list of inclusions on the MLS. This might include items such as the existing fridge, stove, dishwasher, washer, dryer, window coverings, elfs (not Santa’s helper’s but electrical light fixtures), and the such.
If these items have been excluded on the listing and specifically set out as being excluded, it is typically for a specific reason. An item might hold sentimental value, being passed down within a family, such as a dining room light fixture. Have your agent ask the selling agent what specifically is included in the purchase of your home.
If you are looking a buying or selling real estate in Durham Region (Whitby, Oshawa, Uxbridge, Port Perry, Brooklin, Courtice, Bowmanville) or anywhere in Durham Region, feel free to contact James or Patrick Bryant at any time. We look forward to discussing all of your real estate needs.
