Currently, the Lake Havasu real estate market sits in the hands of sellers. Not only do Havasu buyers compete with other local buyers, but they also find themselves pitted against out-of-towners looking for an investment property, vacation home or who simply want to relocate. When you find a gem, you need to be ready to pounce. With so much competition, the seller might reject your offer. While the seller doesn’t legally have to tell you why they declined your offer, their reasons vary. Even more surprising, it isn’t always about the money. Here are a few reasons why a home offer might get rejected…and steps you can take to avoid that happening to you.
Reasons Why a Home Offer Might Get Rejected
TMI Offer Letter
Many real estate agents suggest including a personalized letter with your home offer. In it, you introduce yourself and your family members and discuss what drew you to choose this Lake Havasu house for your own. When done properly, a letter helps your offer stand out from the others. However, if you put too much information in the letter, it could hurt you. For example, telling the seller what you plan on changing once you move in might put your letter at the bottom of the pile. While they are selling their property, that doesn’t mean they don’t still feel nostalgic about it. Ask your Lake Havasu real estate agent to find out a little more about the seller. Then, you can model your letter to cater to them. You want your letter to appeal, not offend.
Offering Too Much Money
Yes, you heard that right. Too much money for a home offer could increase your chances of being rejected. Keep in mind that, if you need to take out a loan to purchase the property, the appraisal must come in at least even with the amount you borrow if not more. If the home doesn’t appraise for the loan amount, you might need to come up with more money out of pocket to make up the difference. Keep your home offer to more realistic terms.
Too Many Demands
Contingencies happen. But, if you demand that the seller throw in certain paintings, furniture or fixtures that the seller already said weren’t for sale, they might reject your home offer. Likewise, let’s say you offer full asking but remain adamant that the seller pays closing costs or insist they pony up thousands for small repairs, your offer will very likely be tossed aside. It doesn’t hurt to ask for things that help sweeten the deal for you. However, be flexible. You don’t want to lose out on the house of your dreams over something silly like an ugly paint color or shag carpeting.
Using an Unknown Lender
Believe it or not, the lender you use for your Lake Havasu mortgage loan matters. An online lender that no one has ever heard of raises red flags. Are they real? Do they know local laws? Will the lender shut down a loan for something they don’t understand? A seller doesn’t want the worry or hassle of dealing with an unknown lender. Feel free to shop around for the best loan terms to fit your needs. But you might want to stick with local tried-and-true lenders. Your real estate agent should be able to recommend a few loan officers for you to interview.
It’s important to be upfront with sellers. Insisting that the seller not know your name or not providing otherwise routine information might make a seller nervous. That’s another sure-fire way to get them to reject your home offer.
And, sometimes, it is only about the money. In a seller’s market, it’s especially important to get your finances together before making a home offer. Even if your bid comes in well above any other offers, you still might get rejected because you haven’t been approved for a home loan yet. Or, your credit is shaky and you have a small down payment. If you present a fuzzy financial picture, the seller loses faith in the deal. Whip your credit into shape before you even start looking at homes.
More often than not, the reason a home offer gets rejected has nothing to do with money. Avoid having your offer rejected. Talk to your real estate agent about the steps they recommend taking to reach an amicable agreement with the seller.