Why did the seller reject my offer?
If you’ve been on the hunt for the right New Orleans home for some time now, you may or may not have experienced that dreaded “rejected” mark on your offer. As soon as we give them the bad news, buyers ask “Why did the seller reject my offer?”.
We get it. It’s disheartening to not even get a counter offer. And it’s made even worse when the listing agent doesn’t give a reason for the rejection (pssst….they aren’t required to tell us!)
If you’re in a multiple offer situation, there is a laundry list of reasons that the seller chose another offer. It could be any of these things.
Price
This is top of the list for sellers. If you’ve made an offer that’s lower than someone else’s, common sense says that they are more likely to go for the higher price.
Loan type
If you’re using FHA or VA financing and the seller knows that there are some issues with the house that won’t pass their inspection process, they will often opt for a buyer with a conventional mortgage or cash purchase. This saves them the annoyance of buyers sending them a list of repairs needed to qualify for a loan when they are adamant about selling the property as-is.
Closing cost assistance
Even if you’re offering full price, a request for closing cost assistance is exactly like making a lower offer. When comparing two offers that are identical except for closing cost assistance, we’re always going to advise a seller to take the cleaner offer.
Appraisal
While we don’t recommend that buyers purchase without an appraisal, there are some investors out there that are willing to take a chance. In an extremely hot market, some buyers will opt to waive the appraisal requirement and risk being forced to pay the difference between the appraised value and the contract price.
Inspections
This one makes us want to faint at the thought, but there are buyers willing to forgo inspections. It’s tough to compete against someone who won’t inspect or ask for repairs, and we don’t recommend it.
Flexible closing terms/date
If you absolutely, positively need to be in a new place by May 1st and the seller absolutely, positively needs to hang out until their job transfer on June 30th, it won’t work between the two of you no matter how great your offer price may be. Generally, listing agents will let us know ahead of time that a seller has some restrictions on closing dates. If that’s the case, we won’t waste your time showing you houses that you can’t actually buy.
Agent reputation
This one ruffles some REALTOR feathers, but it’s reality. Two similar offers. Two different agents. One that has a reputation for working well with others and another that is known for turning real estate into a contact sport. Who do you think a listing agent is going to recommend that a seller work with?
Because every deal is different, I’m sure that there are other reasons for sellers choosing one offer over another. At the end of the day, while it’s frustrating to lose out, it’s making room in your life for the next great house that meets your needs.
There’s a home for everyone and we’re committed to helping you find yours.
