Archive for May, 2010
Question: Is There Something Wrong about Making Multiple Purchase Offers?
It is fairly common for first time homebuyers to experience difficulty in buying a new home. Often, they find themselves often being beaten out by other homebuyers on the properties that they like. Not surprisingly, they often consider making multiple purchase offers. After all, this seems like a good plan. They figured they would have a better shot at getting the house that they like. This may sound sensible, but is this a good thing to do?
When Do People Make Multiple Offers?
A buyer’s apprehension is fairly natural. People want the best house that they can afford, and it can be frustrating to lose a house they really want to somebody else. So, it is not surprising that homebuyers consider making multiple purchase offers. But how do you know if it is a sensible thing to do or not? Can you do this or not?
In order to know for sure, if you are allowed to make this kind of offer, you need to know what kind of market you are dealing with. If it is a seller’s market, buyers are expected to do multiple offers. Why is this so? This is really because there is a low inventory of homes in a seller’s market. The absorption rate is consideration low as well. Homes sell fast and the only recourse of buyers is to make multiple offers. Homeowners are then given the chance to choose the highest and best offer from among the multiple offers. Unfortunately, this means rejection for other buyers.
Drawbacks to Making Multiple Offers
There are some drawbacks to giving multiple offers. You may want to consult with a lawyer first. Homeowners may think that you are not reliable. Making multiple offers may be thought of as a breach of good faith.
This could also result in multiple offer acceptances. If you want to make several offers, you have to make sure that the contract contains contingency clauses. This would allow you to cancel the contract without undesirable consequences. Otherwise, you could end up with a huge source of headache. Sometimes, sellers require buyers to give earnest money. If you refuse to give the same, the sellers may not give your offer much thought.
If you have questions about multiple offers, try to consult with your Colville real estate agent or lawyer, so you can get the best advice. These people are experts when it comes to purchasing homes and they know how you can get your home without suffering undesirable consequences.
Possible Reasons Why Homebuyers Offers are Rejected
As a homebuyer, it can hurt to have your offer rejected especially if you really like a certain property. This is particularly true if you can afford to buy a certain property. It can be heartbreaking to hear the Colville real estate agent say the word, “No.” If you are dead-set on buying the property, you will be likely wondering why the seller rejected your offer. Here are a few reasons why property owners reject some buyers offer:
#1 The Buyer’s Offer is lower than the Property’s Listed Price
If you offer an amount lower than that of the listed price, you should expect rejection. Unless your offer is the highest of all the offers that the property has received, it is doubtful if the owner-seller of the property will accept your offer. He or she will likely feel insulted. The seller’s Colville real estate agent will frown at your offer as well because this would mean a lower commission fee for him or her. Lower-than-list offers may also be ignored if the house is new in the listing. The seller may feel that it is too early to consider a low offer.
#2 The Listing Agent Represents Another Buyer
It happens. No matter how much you offer a listing agent and the seller, you would still likely lose the property if the listing agent represents another buyer. When this happens, the listing agent earns from both side of the deal. Of course, his or her commission from the seller will be reduced.
#3 You Did Not Meet the Requirements and Needs of the Seller
Before you make your offer, you should consider calling the listing agent first. It is a good idea to find out what the seller wants first. You should inquire about specific requirements that the seller may have. If there are requirements, you might want to include them in your offer. So, for instance, the seller requires a long escrow, you should consider offering a closing date. If he or she requires a substantial amount of earnest money, you should consider increasing the amount of your deposit. Make sure that all the financing terms are met if the are any. If you really like the property, you can even offer to buy the house “as is”. Consider the repairs first before you actually do this.
These are a few of the reasons why the seller may reject your offer. So, work with your Colville real estate agent in order to get your offer approved.
