May 25, 2024

Jocuri

Mad about real estate

Why Did the Home Seller Reject Your Offer?

Rejection can cause a homebuyer to experience heartache and disappointment.  A seller is not forced  to shoot down a homebuyer’s offer for the buyer to feel completely horrible.  All the seller needs to say is one word “No,” and the offer is null and void.
Here are the top four reasons as to why a potential home bid is rejected:

The number one reason why offers are rejected is because of a lower than list price offer.
1.)    A seller could feel insulted if an offer is not large enough, the seller may get the impression the buyer is not serious enough.
2.)    A seller could be too mad to respond and could reject the offer immediately.
3.)    If the house is new on the market, the seller could  feel it is a bit too early to entertain offers that are lower than the listed price.
4.)    In most provinces , a seller is not required by law to respond to lower offers.

Offer rejection may be because the buying agent is less than pleasant. An agent that  has less than scrupulous ethics should have their real estate license revoked because nobody wants to deal with a professional that is like this.  Agents who have no ethics or manners are wasting their time and making their potential customers miserable.  If the buyer’s agent is annoying the listing agent, especially during an offer dealing with multiple situations, it does not look good on the agent’s buyer.  Make sure your agent never does the following things:
1.)    Raising of voice or screams on the phone or in person
2.)    Forgets to use manners and say “please” as well as  “thank you”
3.)    Issues demands or delivers ultimatums
4.)    Acts insulting towards the listing agent by printing out market data or sale information, making an agent appear stupid or inept ( even though this may be true)
5.)    Acts demeaning towards others
6.)    Acts aggressive or pushy towards others
7.)    Does not act in a professional manner at all times

There is nothing saying a listing agent cannot take two similar offers to a seller saying, “I don’t prefer Agent A, however, Agent B is very professional.  Select whichever offer you want.”  Do you believe that the buyer is going to select Agent A’s proposal?  Do not forget the business of real estate is alot about networking; being polite and ethical earns respect, acting unscrupulous does not.  Do not let your agent sabotage your chances of buying your dream home; if it does not have anything to  do with price, it could be more than likely the agent!

Reason for having an offer rejected:  Listing agent represents the competition. A relatively unknown practice among consumers is the variable or dual-rate commission discussion that an agent will sometimes include in the listing agreement.  This means the listing agent has an understanding with the seller that if the listing agent also ends up working with and representing the buyer, the listing agent will reduce the fee (because of a dual commission being earned).

An example would be if the listing agent is supposed to receive 6{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} commission, 3{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for listing and 3{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} that is to be given to the broker, he or she might agree to take only 5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} total if working for both sides of the deal.  Therefore, if your personal agent writes up an offer, the seller will spend more and net less profit.  Ask your agent to check with MLS to see if the commission rate is variable.

Offers are rejected because the buyer didn’t meet the sellers particular needs
A buying agent should contact the listing agent to find out if the seller has particular requirements or contentious points.  If so, include them in the offer.
1.)    If  the seller requires a long escrow, offer the seller a long closing date.
2.)    If the seller wants to see a large monetary deposit, make an increase in the deposit.
3.)    Sometimes the financial terms in MLS are not fulfilled.  For example, the seller will accept only offers in cash; do not believe for one second an offer with FHA terms to be acceptable.
4.)    If the seller expresses concerns about repairs, make an offer to purchase the property “as is,” after a visit from a home inspector.
5.)    The seller may want the buyer to have pre-approval for financing, point being you won’t have any idea as to what the seller wants if you don’t ask.