Over the years, you’ve invested countless hours in home improvement. More importantly, your family has created memories. So, naturally, when it comes time to list your home for sale, you’ll want to sell it to someone who will cherish it as much as you have. In this sizzling hot seller’s market, you may likely entertain multiple offers. If this occurs, how should you select the right buyer? And is there any reason at all to turn down an offer on your house? Even if the price is right, the offer may not be. So, it is important to arm yourself with information so you will why you may want to turn down an offer.
5 Reasons to Decline an Offer
Although you may not wish to offend, remember that you are not under an obligation to accept just any offer. In fact, read on to find out a few reasons why you may want to take a pass.
Some buyers submit an offer that is so far below asking that you may initially feel offended. Try not to take it personally. Certain buyers try to bid low, hoping you will be desperate enough to bite. However, if the amount is too low to consider or if the house is new to the housing market, feel free to reject it outright. Or, if you prefer, you could counter.
Not Enough Earnest Money
Even if the offer is in the right range, the earnest money deposit might miss the mark. This, alone, may be reason enough to refuse to accept an offer. Potential buyers offer earnest money as a deposit. This signifies the prospect is. The deposit acan reflect either a flat rate or a percentage of the asking price. In this competitive Southern California market, you may decide to turn down an earnest money offer that is too low. The good news about a seller’s market is that, as the buyer, you currently have the upper hand. But don’t rest on your laurels. This could change at any time. So, be kind.
- Conditions that must be met for a sale to close, contingencies include:
- Completing a home inspection
- Waiting for the buyer to sell their own home
- Review of HOA documentation
While some of the above are reasonable, don’t feel pressured to accept too many “what if’s.” A buyer with numerous contingencies may back out. Discuss options with your real estate agent. They may be able to offer recommendations about acceptable contingencies in your market.
4. Lack of Preapproval
Although optional, a preapproval letter from a lender offers documentation that the buyer is eligible for the loan amount needed. Presentation of this demonstrates that the buyer is serious about buying a home. And, better yet, they can qualify to buy yours. If a prospect fails to produce such a letter, this could signal their inability to procure funding necessary to purchase your home. We always arm our own buyers with a pre-approval letter, so their offers stand out from the crowd.
5. A Better Offer
Finally, if your home is in a competitive market, you may wish to wait for several offers to be submitted all at once. This allows you to accept the most lucrative and sound offer while passing on the rest.
About SoCal Platinum Properties in San Dimas, California
At SoCal Platinum Properties, we offer unique perks to clients who list their home to sell with us. One benefit that we provide, which most other realtors do not, is that we will pay for and arrange to have a home inspection before we put your home on the market. The reason we do this is because we want to eliminate potential potholes down the road, when prospective buyers could use items the home inspector uncovers as an excuse to pay less than they bid. What’s more, resolving minor repairs on the front end often means you can ask more for your home rather than selling it “as is.” To find out more about how to take advantage of this perk and list your home with SoCal Platinum Properties, call (213) 709-5178 today or compete this contact form.