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
http://wellingtonhometeam.com/what-do-you-mean-my-full-price-offer-wasnt-accepted/

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Florida Palm Beach County Wellington Village Of Wellington
Groups:
Palm Beach Florida
Palm Beach County Homes for sale- South Florida Real Estate for Sale
Wellington Homes for sale- South Florida Real Estate for Sale
Palm Beach County Pros
Tags:
wellington fl home buyer
buying a wellington home

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
478,013
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Michigan

What a way to "break" it down and keep it simple. I thoroughly enjoyed this post.

May 01, 2012 03:42 PM #11
Rainmaker
540,932
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Michelle, like you said, there are many possible reasons that sellers don't accept a "full price" offer. I've had the pleasure of explaining that offer ing $1 over listing price, and asking for concessions, is not offering "over" listing price.

May 01, 2012 03:51 PM #12
Ambassador
1,513,207
Tammy Lankford
Lane Realty - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

I just shake my head that agents don't understand this.  Consumers... I get, but why can't their agent explain it to them.... some folks shouldn't have a license.

May 01, 2012 04:03 PM #13
Ambassador
1,094,013
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Michelle: Recently I received 24 offers on a property and one was 150k over the list price (and market value) but was subject to appraisal. Different strokes for different folks but the seller accepted an offer at market value from a buyer putting down 50% with an 800 credit score. Safe seemed to be the way to go. Great idea for a blog post and congrats on the feature.

May 01, 2012 05:07 PM #14
Rainmaker
606,220
Barbara Altieri
RealtyQuest, Fairfield and New Haven County CT Homes for Sale and Real Estate - Shelton, CT
REALTOR - Fairfield County CT Real Estate

Michelle -- It is certainly not all about the price. Terms are extremely important and it's the agent's duty to educate the client.  I am still so surprised by how many agents and sellers do not understand concessions. Excellent post.

May 01, 2012 05:08 PM #15
Ambassador
1,531,449
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Michelle, a post well worthy of the star. Sometimes highest price, even if it's over asking isn't necessarily the best price. The contingencies are usually the deal breakers

May 01, 2012 05:24 PM #16
Rainmaker
594,328
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

Great post Michelle.  We have had several listings recently that received multiple contracts.  Buyers need to be educated...so they don't loose a deal! ::)

May 01, 2012 07:02 PM #17
Ambassador
1,441,331
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Michelle this is an excellent post.  These are pointers a buyers agent should discuss with a potential buyer especially in a market of multiple offers.

May 01, 2012 07:09 PM #18
Rainmaker
346,194
Karen Feltman
Cedar Rapids/Iowa City, IA Skogman Realty - Cedar Rapids, IA
Relocation Specialist
I coach my buyers to give the best overall package of terms in their offer. More money down, closing date that is flexible to the seller and market price if possible. Price is not the only thing that sellers are considering, especially in a multiple offer situation!
May 01, 2012 08:42 PM #19
Rainmaker
721,433
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

Its hard to get a full price offer through how things are going in my area now.  It almost has to be over the list price.

May 01, 2012 09:16 PM #20
Rainmaker
330,811
Mike McCann - Nebraska Land Broker
Mike McCann - Broker, - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

Many very good points are made in your post.  I also let my buyers know that a seller never has to accept any offer nor give a reason why he/she/they rejected the offer.

May 01, 2012 09:22 PM #21
Rainmaker
1,005,633
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Michelle -- so many reasons why an offer will not be accepted --- full price, all cash, no contingencies, over list price --- it is a very interesting time in real estate.   Congrats on the feature.   

May 01, 2012 10:28 PM #22
Ambassador
944,980
Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9663

Of course the the full price offer is rejected, if you demand $30,000 worth of silly contingencies, it really is no longer a full price offer.

I am disappointed in how many agents get bent out of shape over a low offer, yet expect the seller to allow all sorts of contingencies, including expecting the seller to pay for all the stuff found in an inspection.  I guess its a way for them to collect a commission on the value of the home plus the value of the potential repairs that the seller must make to get that full price offer.

May 01, 2012 11:29 PM #23
Rainmaker
1,087,667
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, Tutas Towne Realty, Inc

Full price will rarely get the property in my market. Properties are flying off the shelves with multiple offers. Heck we paid 20% over asking price for our house in 2010.

May 02, 2012 03:55 AM #24
Rainmaker
573,698
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi Michelle,

I will join the crowd.

Applauding wildly.

(Can you hear it?)

Phil

May 02, 2012 04:12 AM #25
Rainmaker
1,831,046
Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

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 #26
Rainer
126,954
Herman Herrera
HERMAN & CO REAL ESTATE l Staten Island, New York - Staten Island, NY
Your trusted Staten Island Real Estate Expert

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

May 02, 2012 03:11 PM #27
Rainmaker
1,240,907
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

 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 #28
Rainmaker
659,150
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

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 #29
Rainer
15,438
Brian Park
Danville, CA

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

May 05, 2012 03:18 PM #30
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,240,907

Michelle Gibson

REALTOR
Have a Wellington Real Estate Question?
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information