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Four Reasons Your Offer Isn't Being Accepted

Having your offer on your dream home rejected can be disheartening and frustrating, especially if it’s happened on two or three properties now. What you may not realize is there may be factors that make your offer unappealing to potential sellers, and leave you wondering what you have to do to finally close a deal. Believe it or not, you don’t always have to raise your asking price.

Here are some of the reasons why your offer may be rejected as well as some ways you can improve your offer and finally land your dream home!

You’re Asking for Too Many Concessions

You’ve found a house you’re in love with, and you’re willing to offer the seller exactly what they’re asking right up front. However, you also want them to give you $5,000 to replace the flooring, fix the leaking faucet in the hall bathroom, dispose of the decrepit shed in the yard, and paint the entire interior in a neutral color.

In your mind’s eye, you may think that what you’re asking isn’t huge, but the truth is you’re asking your seller to give a lot. A $5,000 allowance to replace the flooring cuts into what your seller gets from the sale by a good chunk, and on top of that you’re asking them to spend money and time on painting, disassembling and disposing of a shed, and hiring a plumber to fix a bathroom faucet. By the time everything you’re asking for is done, the seller could have spent weeks and nearly $10,000 getting the house ready for you. No seller is going to be willing to do that, especially with other offers on the table.

You can ask for concessions as part of the deal, like fixing a leaky faucet. In many cases if you’re an appealing buyer, the seller will do a lot to ensure the deal closes. However, asking for too much will get your offer rejected outright. Be prepared to do some of the things you’re asking for yourself.

You Didn’t Have Your Financing in Order

You walk in to an open house and fall in love with it, and immediately want to make an offer on it. However, when the seller asks how you plan to pay for the house, you can’t help but simply shrug your shoulders. You might have good intentions when you say “I’ll figure it out.” But the truth is your buyer doesn’t have any way of knowing that. Why should they accept an offer and take their house off the market when they have little to no indication that you’re really serious about buying the property? How do they know you won’t have to back out of it because suddenly your credit disqualifies you from getting a loan?

If you want to make an offer on a home, you need to be able to have a path to paying for it. If you don’t, your seller is more than likely going to move on and accept an offer from a buyer who is more prepared to complete the sale.

The Seller Doesn’t Like Your Financing

Let’s say the same situation from above exists, only instead of flying blind, you do have your financing in order. There’s something first-time homebuyers don’t often realize: not all financing is created equal. Sellers and listing agents are sometimes biased against certain types of financing because they lead to a lot of extra work without a lot of return. For example, FHA loans require an appraiser to inspect a ton of different items in order for the property to meet “health and safety” standards.

It’s worth noting that agents can’t reject an offer from a buyer on behalf of the seller of the property they’re listing, but they can prejudice their seller against certain types of financing because of the hassle and headaches it can mean. That being said, don’t go out and change your financing because they simply don’t like where the money is coming from. Use the loan that’s right for you, not for your seller—your seller isn’t going to be the one who has to make the payments.

You’re Too Contingent

The last thing a seller wants during a home sale is uncertainty and drama, which leads to stress. The number one way to add uncertainty to a sale is to add contingencies to the offer. Of course it’s understandable to say that you can’t buy someone else’s home unless yours sells, but the truth is that a seller may reject a contingent offer if they’ve got similar ones with few to no contingencies on the table as well.

While you may not be able to do away with your own contingencies entirely, there are things you can do to minimize the impact they have on your deal. For example, a buyer who is contingent on selling their own home, but already has their home on the market and is making noticeable efforts to try and solicit a buyer, will have much better luck getting a contingent offer accepted. The risk is considerably lower, and your seller is less likely to feel as though they’re at risk for getting burned.

Do you need help buying your dream home? Call Dippy Real Estate at (661) 441-3304 and let an experienced Valencia realtor help you through the home buying process.