When you’re buying a home for sale in Phoenix, Scottsdale, Cave Creek or Anthem, your REALTOR® will write up your offer and present it to the seller’s agent. The seller will then have the chance to accept it as-is or negotiate with you – or to reject it entirely. But what could lead a seller to reject an offer on a home? Check out these three common reasons offers end up right in the recycling bin.
3 Reasons a Seller Might Reject Your Offer
Sellers can reject an offer for just about any reason, but these are the three most common:
- The offer was too low
- You asked for too many contingencies
- The seller received a more attractive offer
Here’s a closer look inside each scenario.
Common Offer Rejection Reason #1: The Offer Was Too Low
One of sellers’ main concerns is profit – and if you offer too little cash for the home, a seller could reject your offer outright. This is especially true if you “lowball.” Lowballing is the practice of offering far less than a home is really worth, then expecting the seller to come down in price and continue negotiations.
However, many sellers find lowball offers offensive – and even if they don’t find them offensive, they’re unlikely to take them seriously. Let’s say a home is listed for $500,000 and you walk in and offer the seller $300,000. The seller isn’t going to take that offer seriously; in fact, you’re likely to be rejected outright, because the seller considers you a “lowballer” who wants to pay less than the home is worth.
Sellers are pretty savvy; they know that a fairly priced home will sell. They don’t have to sell to anyone who makes an offer, especially in a thriving market where other offers are likely to come in sooner rather than later.
That doesn’t mean you can’t offer below asking price, though – especially if your offer is justified based on the home’s condition, location or other factors.
Common Offer Rejection Reason #2: You Asked for Too Many Contingencies
Sellers aren’t only thinking about financial gain. Many are thinking about the path of least resistance. If you submit an offer that requires the seller to do a lot of work, you’re likely to get a rejection pretty quickly; that’s because there will probably be other offers that ask for less.
Common Offer Rejection Reason #3: The Seller Received a More Attractive Offer
When you make an offer on a home, it’s in your best interest to bring your best offer to the table right off the bat. If there are other offers and one is more attractive than the other – because it’s higher, asks for fewer contingencies, or both – the seller is likely to reject yours in favor of the other one.
Your REALTOR will talk to you about making the right offer on the home you want, and he or she will explain the process and what happens next.
Are You Thinking About Buying or Selling a Home in Phoenix?
If you’re selling a home in Phoenix, Cave Creek, Anthem or Scottsdale, we can market it to all the right buyers so you can sell quickly (and at the right price). Call us at 602-332-6188 to learn more.
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