Buying A Knoxville Home In A Competitive Market – Why Offers Get Rejected
Buying a Knoxville home in a competitive market can be difficult.
With so many buyers on the market, many buyers will experience rejection in one way or another, which can be heartbreaking when you find the right home.
In this post, we’ll take a closer look why offers get rejected.
Your Offer Is Too Low
Price is everything when it comes to making an offer, particularly when you’re buying a Knoxville home in a competitive market.
When sellers are receiving offers at or above list price, it can be a rookie mistake to make an lowball offer. In the current seller’s market, sellers have the ability to pick and choose among offers, which is why it is essential that you come in with a strong offer from the start.
When considering price on a Knoxville home for sale, it’s important to utilize your agent as a resource. Your agent can provide you with an understanding of what homes are selling for in the the area and what would be a competitive price would be. Ultimately, it’s your decision what to offer, but if you’re serious about a home, it’s important to give the data from your agent a real consideration.
You’re Asking For Too Much
In a competitive market, you cannot ask for everything under the sun in an offer. If you do, you may find yourself being beat out by other buyers.
Oftentimes, buyers will ask for the following in an offer:
- Closing Costs
- Appliances
- Home Warranty
- Personal Items (i.e. curtains)
If you do ask for things like this in your offer, it’s important to make sure your offer takes these into account. If you’re going to ask for a seller to pay some of your closing costs, take that into consideration with your asking price.
If at all possible, the cleaner you make the offer, the better in a competitive market. So, if you are able to ask less of the seller, you should do so. If you can live without asking for a washer and dryer or can pay for a home warranty on your own, it can make your offer more appealing to a seller.
You Moved Too Slow
In a competitive real estate market, minutes matter. When you move too slow on a home, you risk losing out on a great home, even if you make a great offer.
In the current market, great homes are moving quickly. When you find a home that meets your needs, it’s imperative that you don’t waste time, otherwise you may find yourself missing out. When it comes to writing an offer, there isn’t often time to test the waters with a low offer or to to wait too long in writing an offer. If you find the right home, you need to move quickly.
It’s also imperative that you go in with a strong offer from the start. This will help up your chance in winning the bid. In addition, if multiple offers come in, it’s important that you meet the deadlines that are set.
Financing Issues
Unfortunately, you offer could get rejected due to the type of financing you’re getting or who you’re getting a loan through.
When sellers are evaluating offers, they do consider the strength of a buyer’s ability to secure financing. Sellers want to know that potential buyers will not have any issues getting approved for a loan. Some sellers may have a preference on loan type or may prefer a slightly lower cash offer.
The best thing you can do as a buyer to show your ability to get approved for a loan. This means you want to get a pre-approval (which is different than pre-qualified) letter from a local lender. Generally, local lenders have a better reputation for getting loans quickly and efficiently.
Bottom Line: Don’t Miss Out
Every real estate transaction is a two way street. In a seller’s market, sellers have the upper hand. You’ll want to curtail your offer to help meet their needs and make it the best from the start. Sellers reject offers that aren’t as strong as the competition, so be sure you make a great impression from the start.
Are you thinking about buying a Knoxville home this year? Please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected] or at 865-696-1888.
