We’re entering an interesting period in the real estate market as interest rates start climbing. Buyers will low-ball offers and sellers will hold on to an asking price they might have achieved 12 months ago.
So everyone needs to buckle in for some initial disappointment and frustration but ultimately be prepared to work together to find compromise and mutual value.
This is where a great agent comes into their own; taking the time and care to explain the situation honestly from the perspectives of the buyer and seller. Neither party has to agree with the other’s point of view, but if you want to make a deal, there’ll have to be give-and-take.
It’s actually the nature of real estate regardless of the economic cycle. Sellers always want top dollar, and buyers worry they’re paying too much.
For first-time buyers, finding the right property might be a challenge. Rates have not moved so high that sellers are worried about whether they’ll find a buyer at the right price. So low-balling won’t work at this stage.
As an experienced agent in your neighborhood, I see three main reasons why offers are rejected. Below, I’ve listed them with a short explanation for how a seller might respond. I hope you find it helpful.
In the meantime, if I can help you sell your property and find the next home of your dreams, please do not hesitate to contact us. We can discuss price trends, buyer preferences and marketing strategies to maximize the value of your home.
Low-balling backfires
It’s the main cause for rejection. It also signals that you will be hard work as a buyer. You’ll drop down a seller’s list of potential buyers and the time they’re prepared to spend on you. In a situation of multiple bids, you’ll lose every time.
Discounting the deposit
The earnest money you’re prepared to commit to a purchase should be around 1% of the price. Any less, and warning signals go off. The seller will fear you’ll pull out.
Too many conditions
Sellers become frustrated at “contingencies”. These are events or issues that might crop up and allow a buyer to exit a deal without penalty. Legitimate ones would include major issues raised during a building inspection. The pettier your contingencies, the more likely a seller will look elsewhere for a deal.