I was recently contacted by an agent who submitted a full price offer on one of my listings and their client wanted to know why their offer wasn't accepted.
It is important for buyers to understand a full price offer doesn't mean the seller will pick their offer or has to pick their offer. While a seller may initially focus on price there are so many other terms in a contract that can easily be a deal breaker, like a request for seller concessions, little or no money down in escrow or a non-negotiable close date that doesn't work for the sellers.
When I sit down with a client to write an offer we discuss ALL the terms of the offer, not just the price. These other terms that are often times discounted or brushed off include the following:
Financing: Are you paying cash or getting financing? Prior to writing an offer you should know whether or not you're going to pay cash or what type of loan program you're going going with.
Closing Costs: Are you asking the seller to contribute towards your closing costs? Offering full price and asking for a 3% seller contribution is technically not a full price offer to the seller. While you are paying full price, the seller will not be netting the full price. If the asking price is $200,000 and you offer $200,000 with a 3% seller contribution the seller is actually netting $194,000, NOT $200,000. If you need seller concessions know how much, don't put 6% and only need 3% because that additional 3% could make a huge difference.
Escrow: How much are you putting in escrow and when?
Closing Date: When do you want to close and is this date flexible? If the property you want to purchase is a short sale make sure your closing date is VERY flexible because approval could come at any minute and you will most likely be given 30 days to close from approval date. Unfortunately the bank is not going to care that your lease isn't up for another 90 days and give you an extension for that amount of time.
Contingencies: What type of contingencies and when do the contingency periods end? Common contingencies include inspection and mortgage.
My goal as a REALTOR® is to educate my clients about ALL the terms of their offer and NOT focus solely on price because in a multiple situation those terms can become VERY important and crucial.
Price is a big factor, but there are other pieces to the puzzle!
If you are looking to purchase a home in Wellington Florida contact us today!
Originally posted http://wellingtonhometeam.com/what-do-you-mean-my-full-price-offer-wasnt-accepted/
What do you mean my FULL PRICE OFFER wasn't Accepted?
What do you mean my FULL PRICE OFFER wasn't Accepted?
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