In real estate, it is very common for buyers to make offers on homes for amounts that are less than the asking prices. When this happens, the seller is able to counter the offer, if necessary, or accept or reject it. There are times, though, when a seller will counter or reject a full-price offer on a house. While this may seem strange, it happens more than you think, and here are some of the reasons why this may occur.
The contingencies are too much
An offer you make on a house is much more detailed than just an amount you are willing to pay the homeowner, and a typical offer will have some contingencies with it. A contingency is a condition a seller must agree to when reviewing an offer, and there is a chance that a seller will reject an offer if the buyer is asking for too much. For example, if you give a full-price offer but ask the seller to completely renovate the kitchen, the seller might be opposed to doing this, as it would cost a lot of money. The seller may reject the offer because of this, or he or she may counter it.
The market is really hot and other offers are coming in
While you might think the asking price of a house is the price you will pay, this is not always the case. The asking price is just a general starting amount for a deal. If the market is really bad, the seller might agree to sell it for much less than the asking price. If the market is hot, though, the seller might not even be happy getting a full-price offer. When the market is hot, there may be lots of people willing to pay full price for a house or more, and sellers will often wait for multiple offers to come in to get the best price.
The seller experienced cold feet and does not want to sell now
There is also a chance the person selling the house might suddenly decide that he or she does not want to sell. While this is rare, there are times when it happens, and this is one reason why a seller might reject a full-price offer.
These are the main three reasons why you might receive a counteroffer or rejection from a seller of a house after you make a full-price offer. If you would like to learn more about offers, talk to a real estate agency in your town.
For more information on buying single-family homes, contact a real estate agent.