What do you mean my FULL PRICE OFFER wasn't Accepted?

By
Real Estate Agent with Hansen Real Estate Group Inc.
What do you mean my FULL PRICE OFFER wasn't Accepted?

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:

What do you mean my FULL PRICE OFFER wasn't Accepted?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
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Topic:
Home Buying
Location:
Florida Palm Beach County Wellington Village Of Wellington
Groups:
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Wellington Homes for sale- South Florida Real Estate for Sale
Palm Beach County Pros
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Rainmaker
1,686,204
Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

Like you say Michelle, it all depends on the contingencies, the situation of the listing, etc.  We know the market and we can educate our buyers about a good offer with a high possibility of success.  Whether or not they listen, is another story.

May 02, 2012 04:19 AM
Rainmaker
125,218
Herman Herrera
Your trusted Staten Island Real Estate Expert
HERMAN & CO REAL ESTATE l Staten Island, New York

Good post Michelle.  I agree - the terms are sometimes more important than the offer.

May 02, 2012 03:11 PM
Rainmaker
1,196,894
Michelle Gibson
REALTOR
Hansen Real Estate Group Inc.

 Jim - Yes there are

Winston - It does go behind the price

Jane - Yes, full price or above doesn't always get accepted

Kathy - I know this happens a lot in our area especially with all the cash buyers we have.

Larry - Me too!

Jane - Yes there are

Loreena - Thanks

Cheryl - Yes they can

Mike - I know it happens

Myrl - Yes they do

Robert - Thanks

Eric - Unfortunately a lot of buyers don't understand that

Tammy - Me too

Melissa - WOW, 24 offers?  That's amazing and I can tell you most sellers would do the exact same thing as your clients, in my opinion it's the smart move.

Barbara - Me too

Ed - No it's not

Joy - I agree

Jennifer - Yes they should and unfortunately I think a lot just fill them in without explaining.

Karen - So do I

Chuck - Sometimes that's the case here too

Mike - Thank you

Michael - Yes it is and thank you

Bob - Never looked at it that way

Bryant - That's amazing and in my opinion a great sign.

Phil - Thanks!

Gabe - Yes it does

Herman - Thank you 

May 03, 2012 06:40 PM
Rainmaker
648,171
Eileen Hsu
LICENSED REAL ESTATE SALESPERSON
Douglas Elliman Real Estate

Good points. It is all about the price AND the terms. Many times buyers do not take sellers closing cost in consideration and etc.

May 04, 2012 10:12 AM
Rainer
15,438
Brian Park

The buyer shouldn't have to ask, the counter should inform them.

May 05, 2012 03:18 PM
Anonymous
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Rainmaker
1,196,894

Michelle Gibson

REALTOR
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