Best Offer Is Often Not the Highest One
About two weeks ago, my buyers made an offer on a home where they were in competition. They did not get it.
I just got a call from the listing agent. Seems the accepted offer is falling apart and she is wondering if my buyers are still interested.
This is a classic situation where the seller had multiple offers, and, probably, with her agent’s acquiescence, chose one that was higher in price. The mistake was not weighing all factors. My buyers were putting down almost 40% on this property, higher than usual for one in its price range, as well as their having other desirable qualifications. A huge down payment makes the buyer almost certain to get a loan, always important, but even more meaningful with the now more stringent lender requirements.
My clients have decided not to renew their offer at this time.
The moral of this story is that the most important criterion in accepting a contract is the buyer’s ability to close the transaction, assuming the offered price is not unreasonably low. I have a feeling that neither the seller, nor her agent, has yet learned this lesson.