Why Do Sellers Reject Offers?
Why do sellers reject offers? So many reasons. Let’s focus on a few key points. There are a variety of reasons that offers are not countered and usually, it is because of a combination of factors that negatively affect an offer. Multiple inconsistencies spell out a warning of murky waters ahead.
Price, of course, is an issue. A low down payment, depending on the type of property and value. Good faith deposits tell a seller how serious a buyer is and the level of commitment. Available cash on deposit shows cash reserve funds. Contingency timelines can make or break an escrow. Inspections, of course, are always advised but how well has the buyer’s agent educated her buyers on the as-is condition? Are the buyers expecting repairs?
Agents sometimes ask for retrofit, and that tells you upfront expect some issues as retrofit is not acceptable to many sellers. It is easy enough to counter out items. The problem is even when you counter out the obvious risks, it is still possible an agent may tell the buyer they can expect the seller to do repairs or get a seller credit, etc. Guess what? The seller said no repairs and she meant it. The buyer cancels as the buyer’s agent has set impossible expectations. It happens, as crazy as it sounds.
After you have closed so many transactions in your career, the way an agent writes an offer exposes the story. An agent’s communication style, the way he or she takes feedback, are the agents defensive? A user-friendly agent will help close the escrow, not insert minefields to blow up the escrow. When you work hard to be the best Sacramento real estate agent for your client, it means always sharing everything you observe with them.
Newer agents are ok to work with if they are humble enough to admit what they don’t know everything. If they try to bully their way through a transaction without the knowledge needed, it quickly becomes a nightmare. They ask for unreasonable concessions and extensions. Once we are in escrow, of course, you try to hold the sale together for your seller.
A difficult escrow is very hard on everyone, especially the seller. Dealing with a difficult buyer’s agent and a nervous nellie buyer can feel like you have used a roll of duct tape to hold an escrow together. We go to any lengths to protect our clients and try to close even the most difficult escrows.
When things go awry, the seller can always serve a 48-hour notice to perform. This notice says comply or this escrow could be canceled. By the time this notice has been served, you can assume it is a last-ditch effort. The seller has lost patience and faith in the buyer and says: I quit. When an offer and a buyer’s agent show you too many red flags at the start, a rejection may be the most direct route. It is time to wait for a stronger offer.
It is kind of like dating, both parties start out on best behavior. If the first date is horrible and you want to kick him to the curb, it is very unlikely an ongoing relationship would improve with time. Cut your losses early when red flags appear. Get out before time, energy and precious resources are invested. Sellers reject offers because they are saving themselves a headache when a perfectly good offer will come along.
— JaCi Wallace