There is no doubt that when an offer for a Windsor home is rejected, the potential buyers wonder what on earth happened. The disappointment can be huge and often frustrates them from looking at other properties. Number one: they feel they won’t find a home they like as well as the one they put an offer on. Number two: Their enthusiasm went down the drain.
First, let me say that when this happens, I always tell my clients that they WILL find a new property that they love just as much, if not more. Secondly, while it’s understandable the joy of finding a home has been diffused, the key is to get home shopping again as soon as possible. Once you actually find another property and your bid has been accepted, the sting of the initial rejection is just about forgotten.
But why did your offer get rejected? Buyers often ask me if there was anything they could have done differently. Here are the most common reasons that we hear:
1. Sellers offended by offer.
Sellers often are insulted when buyers offer way too little then ask for lots of other items, like furnishings, help with closing costs or an unusually short or long escrow. In other words, when buyers leave the impression that they want a steal of a deal. Sellers in this case are often too angry to respond, thus rejecting the offer immediately.
2. House new on the market:
If a buyer makes a low offer on a property just as it goes on the market, sellers often choose to wait to see if another “bigger and better” offer is right around the corner.
3. Bad or inexperienced agents that don’t know how to negotiate.
Unfortunately, this can happen when agents, who are rude or disrespectful, simply refuse to use any manners. I can assure you, these type of agents have no business being in real estate, especially during sensitive negotiations or when a seller receives multiple offers. Be cautious of any agent that has a reputation of making demands or issuing ultimatums, insults other agents with their demeaning attitude and does not display professionalism seven days a week, 24 hours a day. It’s unacceptable. You never want an agent to let your house slip from your fingers simply because he can’t control his temper or ego.
4. Buyer did not meet seller’s needs:
It is always helpful if a buyer knows what the sellers wants in an offer. This means if they would like a long or short escrow, a larger deposit, or even a preapproval letter. Regardless, if you, as a buyer, really wants a house, then make your most attractive offer at the very beginning. Especially if you know others are making offers as well. But remember, keep your budget in mind. Don’t let your heart overrule your head.
I always suggest to my clients to get a pre-approval letter before they even think about touring homes. Why? Because they are worth their weight in gold. It is music to a seller’s ears when they hear the magic words, “The buyers are pre-approved.” In multiple offers, sellers will often select a buyer who has a pre-approval letter even if their offer is a bit lower. Because if a seller accepts the higher offer without the letter, they know they must wait to hear from the buyer’s agent that the loan has been either accepted, or worse, they have been refused a loan. It is then that a seller’s agent will frantically locate the other buyer they turned down with the pre-approval letter, hoping that they are still interested in the house and their feelings aren’t too hurt.
The advantages of a pre-approval letter:
1. You save time by looking at the right priced homes.
2. A buyer has more confidence and avoids frustration when looking at homes.
3. Increases negotiating and buying power.
4. A faster closing/escrow period.
For first time homebuyers, I believe that pre-approval letters are critical as it’s easy to get too emotionally attached to homes that you love. And if an offer is rejected, it really is a huge disappointment.
I also suggest to my clients to make the best offer they possibly can at the very beginning if they really want a property, especially if a home is getting lots of attention. And certainly, when this is the case, it’s not a time to be greedy and ask for everything. Again, sellers simply aren’t interested in dealing with those buyers who want everything for basically nothing.
Always hire a real estate agent that has a tremendous amount of experience and that can successfully negotiate on your behalf. If you have any other questions, or have had a bad experience with a previous agent, let us see what we can do to help you.