My offers on houses keeps being rejected or outbid. my realtor says its because i am asking seller to pay closing costs? what should i do?

Asked by Mousy4u, Dover, DE Mon May 7, 2012

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17
Dot Burton, Agent, Smyrna, DE
Tue May 8, 2012
I believe the reason your offers continue to be rejected is because your offer is very low (under market value) and possibly your type of financing. The market is really picking up and most sellers are taking the highest offer for start. The home can still be negotiated after home and termite inspections and the seller is taking that into consideration with your offer. I've had two recent buyer who lost the home of their dreams because they did not look at recent comps prepared for them, they chose to low bid and lost. 10,000 higher is $45 a month in your mortgage, have the offer made with your highest/best price and then make it contingent upon the appraisal and home inspection. Hope this info helps you.

Dot Burton
1 vote
S. Walton Si…, Agent, Christiana, DE
Wed Dec 10, 2014
A buyer asking a seller to pay closing costs is very common. A good buyers agent should add value to your transaction.

Your buyers agent can give input regarding the sellers current asking price and the current valuation of the property. That input will help you decide what amount to offer or if you should move on to a different property. A buyer can offer up to full price and then add an additional amount, to be refunded to the buyer at settlement for costs at closing. As always, get everything in writing. Be patient and look for value.

Best,
S. Walt Simpson
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Tue Jan 29, 2013
Expected increases in both rentals and home sales, mortgage rates historically low and lack of inventory is encouraging more consumers to buy and sellers to hold on the asking prices. Your real estate agent is right offer with sellers contribution for closing cost are normally rejected in this hot market.

All the best,

Maria Cipollone

Century 21 Tenace

http://www.Flahomespecialist.com
0 votes
James Olson, Agent, Dover, DE
Tue Jan 29, 2013
The are many ways to make your offer more attractive to sellers without costing your self more money.
In regards to asking for closing help, think of it this way.....
I buy your car for 10k,and the loan amount from the bank is exactly 10k.......but you give me back 500 for new tires.
In this scenario...I paid 10k for the car but your cash in pocket after the sale is $9500.
To summarize it doesn't matter if you offer 100k for 110k with 10 back in settlement help. Both offers are the same to the seller.
I hope this makes sense, if not feel free to call. Lastly, please check out my reviews on zillow.com
Jim
0 votes
Ilbroker, , Chicago, IL
Sun Jun 24, 2012
If the sellers won't agree to pay some of the closing costs, my suggestion is to counter back with a lower offer. Maybe consider writing a letter of how much you love the property and really can see yourself living in that home. If neither of those work, you may need to rethink your options. Price points? Qualifications? Maybe even a new agent? Let me know if I can help in any way. Even from IL.
0 votes
This person is a spammer or a scammer please disregard their answer.
Flag Mon Jun 25, 2012
Interested , Agent, DE,
Wed May 9, 2012
Mousy4U, as you know we do not get paid by the buyer on most transaction so it appears HomeStager person has an ax to grind...
You may consider using another agent to help you with your offers.
0 votes
The Best Home…, , Dover, DE
Wed May 9, 2012
Keep shopping, don't listen to the agents, they just want to make a buck. There are tons of great houses in Dover and the prices are incredible right now. You will find the house and the seller for you. Do not offer more than the house is worth even to get seller help. The house will not appraise and you will have a lot of time effort and money tied up in a deal that won't fly with your lender.
0 votes
WOW -- home stager - I would like you to come stage a few of my clients homes for free if you are any good? thank you.
Flag Wed May 9, 2012
Interested , Agent, DE,
Tue May 8, 2012
Mousy4U, are you using a real estate agent to make these offers?
0 votes
If, you are using the same agent for all 4 offers -- seems like you would be more in tuned with what the seller may accept-- maybe you need one of us to help you in your next offer if the same agent can't get your deal done.
Flag Tue May 8, 2012
Mousy4u, Home Buyer, Dover, DE
Tue May 8, 2012
Thank you everyone for answering so far. i do have to clarify something though. I am not offering below the listing price. I have offered above the listing price on 3 out of 4 offers with the seller paying a percentage of the closing costs and have been outbid.
0 votes
I know everyone says it is a buyer's market. And for a while it has been but the tables are turning. Depending on the price range you are looking at, I am seeiing the "market pendulum" turning to seller's market or at least beginning to. If you are buying in the low 100's and below, then all your ducks need to be in a row and your pencils sharpened because EVERYONE is looking and buying in this range. Even fixer uppers are seeing multiple offers. Without know the full history of your experience it will be hard for any of us to give accurate advice. But it appears to me that you need to sit with your realtor and ask why does he/she think this is happening and what can you do to make your offer stick out. Experience in your professionals will be a key to your success. Good luck with your househunting.
Flag Fri May 11, 2012
Renee Thomps…, Agent, Camden, DE
Tue May 8, 2012
Ask your Realtor to provide you with Trend statistics as to percentage of actual purchase price to asking price in that zip code to establish your initial offer. As for closing costs most sellers are okay with providing some but if you are asking for "all" closing costs that might be a little unrealistic. There might be other ways to assist with closing costs such as the bond program for first time homeowners under FHA (talk to your mortgage professional) or ask a family member.
0 votes
Yvonne Hall, Agent, Dover, DE
Tue May 8, 2012
Buyers know it is a buyers market, however, if you come in with low offers and ask for all or most of your closing costs, your offer will most likely be declined. If you come in with $10,000 under list price, and ask for $8,000 in closing costs, it usually is not possible for lots of sellers to accept because once they pay comissions, transfer fees and their morgtage costs and recording and attorney fees, they may end of in a short sale position. It is best to look at making a full price offer and ask for your closng costs. If it is a $10,000 difference of what you wanted to pay, look at this differently. $10,000 difference in sales price is only $50 per month added to a payment. Would you rather have the home you want (at a cost of $50 per month extra in payment) or continue looking while the home you really wanted goes to someone else. I hope this helps you when making a offer in the future. Please feel free to contact me if you have additional questions. Yvonne
0 votes
Interested , Agent, DE,
Mon May 7, 2012
Carol, has a nice post and always agree on the win win when asking for something...
fair exchange no robbery as friend of mine use to say.
0 votes
Carol Succar…, Agent, Lewes, DE
Mon May 7, 2012
The maket is beginning to change depending on the price range you are in. I agree with pretty much all the advice you have received so far from this post. I would encourage you to ask for either seller help OR reduction in price. NOT BOTH. If you are dealing with a bank or foreclosure, the lender has already gone down that path probably where the buyer before didn't have a financial contribution to the offer (they bought with little or no $ down. ) so that makes them hesitant to give you everything. If you are dealing with the homeowner, well, they need money to go to their next house, they probably already are taking a beating on value so if you are asking for everything, you may end up with nothing. Try and make it a win win for both of you and you will be grillin and chillin in your new home by summer~! Good luck!
0 votes
Interested , Agent, DE,
Mon May 7, 2012
I like the idea of finding a house that meets your needs... I know of a few properties that the seller is paying some closing cost.
Perhaps you should give me a call and let me discuss what options you have...
kai
302-588-7890
0 votes
Tim Montoya, Agent, Bel Air, MD
Mon May 7, 2012
1st off, see what your Realtor suggests. He/She will know the local market best and will probably have the best advice. In my market, activity has picked up and things are more competitive now. If the home is listed accurately and not overpriced, then make an offer close to the asking price and ask for seller help. Also, check to see if there are any local buyer grants or programs that are available to help with closing costs. If it comes down to it, you may have to save up for your closing costs, ask a family member for a gift or search for a seller willing to contribute to your expenses.
0 votes
John Thomas, Mortgage Broker Or Lender, Newark, DE
Mon May 7, 2012
If you are in a competitive bid then you can ask the seller to pay closing costs but may need to increase your bid so that seller will still net the asking price. For example: If the seller is listing house at $150,000 and you need $6,000 for closing costs then if you offer full price plus them paying closing costs, seller is only netting $144,000. So if you offer $156,000 with the seller paying $6,000 then seller nets $150,000 which is ask price.
If you need help with this, please feel free to call me to discuss 302-703-0727.

John R. Thomas
Certified Mortgage Planner - NMLS 38783
Primary Residential Mortgage
302-703-0727 DE Office
0 votes
Blueeyedgirl…, Home Buyer, Farmingville, NY
Mon May 7, 2012
I am doing something similiar to that too that is called a seller concession.. A seller concession is that you build the closing costs into the loan and I so far had no problem using that.. Have you thought to try that??? So the seller isnt paying anything.. and you are rolling the closing costs in your loan. The only thing is the house has to appraise a little higher then you pay to cover the concession. I am currently doing a six percent conscession.. good luck! Ask your mortgage broker about that.. They usually approve no prob..
0 votes
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