A property seller can reject your big offer if they get a better one elsewhere. Property sellers and their agents don't base their decisions solely based on their sizes. Therefore, a better offer isn't necessarily bigger than yours; it can be better in other ways. Here are three ways in which another offer may be better than yours even if it is equal or lower than yours:
It Is a Cash Offer
It's not a secret that property sellers love cash buyers; it saves them time and money. For one, a cash purchase is likely to close faster than a mortgage purchase because the former eliminates the loan processing steps that mortgage buyers must go through. With a cash purchase, once you have inspected the house and met all the contingencies, you can close the deal within a week. This compares unfavorably with the loan process, which can take even a month to complete. Guess which one the seller is likely to opt for even if they are of the same amount.
The Other Buyer Is Also Paying For Extras
Another buyer may also make a better bid by offering to pay for the "extra" costs associated with the sale. In a typical property sale, the actual purchase price isn't the only money that will be changing hands. There are other things to pay for, such as a home warranty, attorney fees, and loan fees. In the usual course of events, the buyer pays the closing costs related to their mortgage while the seller pays the ones related to the transfer of the property to the buyer, but you can also negotiate who pays for what. Therefore, another buyer may make the same offer as yours but then sweeten it to pay for the seller's closing costs too.
The Other Offer Has Fewer Contingencies
When buyers make property purchase offers, they rarely make the purchases unconditional. Making contingencies is a way of protecting yourself should you need to quit the deal due to unforeseen circumstances. For example, a buyer may promise to buy a property only if they secure a loan or sell their current home.
Including contingencies in your purchase offer is all good since it protects your interests. However, the more contingencies you have, the higher the risk that one of them will fail. Therefore, if you make an offer saddled with a litany of contingencies, don't be surprised if the seller accepts an equal or lower offer with fewer contingencies.
Therefore, don't just rely on the size of your offer when submitting a competing bid. Talk to a real estate agent to help you craft a winning bid on a home for sale, one that is likely to be accepted over similar offers.