You loved the house so much, you made a good offer. Yet for some reason, it was rejected. Why?
While home sellers don’t have to explain why they pass up what seems like a perfectly fine offer they do have their reasons. Worried you might be doing or saying something that’s making home sellers steer clear? Check out the tips below.
TMI Offer Letter
When the bids are very close, things like a personal letter can either help or hurt, depending on what it says. For example, if the buyer went on and on about the huge remodel they would do when they owned the house this could be a huge slap in the face to the seller who spent a ton of money remodeling the house already. On the other hand, if a buyer writes a letter that is just filled with grammar and spelling mistakes this too could make the buyer think twice. There are many agents who swear by the power of a heartfelt offer letter, but make sure you don’t in any way insult the sellers or their taste.
Your Offer Was Too High
Receiving multiple offers above list price on a home in a very sought-after neighborhood is not uncommon. However, if a seller receives an offer that is way above asking price, such as $40,000 over, it may be tempting to go with the highest bid but any good Realtor would know the house will not likely appraise for this higher amount. A higher offer isn’t always better since lenders will only loan you as much as the house is appraised for and not a cent more. A solid, realistic offer is a much better move. If you do choose to bid high, make sure you’re willing to cover the difference out of pocket.
Unknown Lender
There are thousands of online lenders that are willing to give you a loan. However, the lender you choose is a bigger deal than you probably think. If you use an unknown lender this could make the seller wary because they may not understand the local customs and laws. A local lender would already understand. Often a real estate agent and seller feel more comfortable with a local lender they know. So do your research and choose the loan that’s right for you, but consider giving preference to a well-regarded local mortgage lender when possible.
Demanding a Family Heirloom
When you go to see the inside of the house it is very easy to fall in love with some of the furniture pieces the seller has. If you do fall in love with a furniture piece it’s not uncommon to have your realtor write it into your offer so you will not only get the house but that amazing chandelier in the dining room. However, if the sellers refuse to sign because they want to keep that chandelier because it’s a family heirloom or simply because they like it, let it go. Buyers can get wrapped up in the little things when in reality they don’t really matter. Don’t lose an entire house over a piece of furniture.
Full-Price Offer But Nickel-And-Dime Elsewhere
Making a full-price offer is great, however, if you make a full price offer but you request $10,000 towards closing costs the sellers are not actually getting a full-price offer. While sellers love to see full-price offers, don’t try to Scrooge them out of that money elsewhere because they will see right through it.
Something to Hide
Playing games or withholding routine information can make the seller doubt you and your intentions. It’s not uncommon for celebrities to want to remain anonymous when buying a home as to remain under the radar. However, if a buyer who is purchasing a home for around $150,000 it may seem a little strange if the buyer’s realtor will not give any sort of information about the buyer.
Shaky Financial Picture
The last thing a seller wants is to get ready to close, only to discover that the buyer cannot complete the transaction and thus send them back to the drawing board. Make sure you’ve cleaned up your credit and have your finances in order before making an offer. If your a buyer that makes an offer on a house, but comes in with a low down payment, a high debt-to-income ratio, and a subpar credit score, that could be enough to send the seller running.
