So, imagine how it would feel to find the perfect condo after months of searching, and make your best offer, only to have it turned down by the seller? That would be a real kick in the teeth we’re sure.
However, condo buyers, having your first or even your second offer rejected by the seller doesn’t mean the end of your homeownership dream. If can you right your wrongs, you can significantly increase the chances of getting your next offer accepted on your dream condo.
To guide you in this, we'll unveil the top reasons why offers on condos for sale in Brampton are usually rejected. We’ll also share how to correct these errors so you can win the condo successfully the next time.
REASON #1 - Lowballing Your Offer
Sellers don’t just pull a number out of thin air when they price their condo. Before putting a price tag on their condo, they carefully consider factors such as recent sales in the area, the condo’s condition, upgrades, and current housing market trends. Only after thoroughly researching all these factors does the seller set the asking price of the condo.
So, if you put forth a slightly lower-price offer, the seller may accept it or give you a counteroffer. However, in case you offer to give a drastically lower price for the condo, the seller will outright reject it because they know the fair market value of their property.
The seller might see your lowball offer on their condo for sale in Brampton as disrespectful and insulting. The seller might feel like you don’t value their property or you’re a window shopper with zero knowledge about the housing market.
Thus, to ensure that you’re not making a terribly lowball offer on a property, try to find out the fair market value of the condo you’re interested in. You can do this by looking at recent sales of similar properties in Brampton with the help of your Realtor.
REASON #2 - Making an Offer Without a Mortgage Pre-Approval.
A mortgage pre-approval is basically a lender’s promise to lend you a specific amount of money to buy a condo. Without this mortgage pre-approval, sellers might view your offer with suspicion. They will worry that you might not be able to secure financing before the closing day which could delay the sale or even make the deal fall through entirely. And in a competitive housing market like Brampton, sellers don’t want this uncertainty.
So, if you don’t want your offer on the Brampton condo for sale to be rejected, get a loan pre-approval before house hunting. This means you’ll have to get in touch with a lender who will review your financial situation and give you a pre-approval.
REASON #3 - Adding Too Many Contingencies to Your Offer
Contingencies are conditions that must be met for the sale of the condo to go through. For example, as a condo buyer, you might include a contingency that the sale is dependent on getting financing or that the condo passes a home inspection. While these conditions can protect you as a buyer, having too many of them in your offer can make it less attractive to the seller.
This is because a seller wants a smooth and quick sale and contingencies can slow down the process or even cause the deal to fall apart. A seller usually prefers an offer with fewer contingencies, even if the buyer offers a lower price for the property.
This is why when making an offer on a condo for sale in Brampton, consider which contingencies are truly important. If you’re unsure about which contingencies to include or remove, get in touch with your Realtor. The expert can help you strike the right balance between protecting your interests and making your offer more appealing to the seller.
REASON #4 - Unreasonable Closing Timeline
A closing timeline refers to the period between when your offer is accepted and when the sale of the condo is finalized. Sellers often prefer a closing timeline that’s just right - not too long and not too short.
If the closing timeline is too long, the seller might have to wait months before receiving their money. This can be frustrating especially if they are eager to move on to their next property.
On the other hand, a timeline that is too short can also be an issue for the seller of the condo. The seller might not have enough time to pack up, make moving arrangements, or finalize their next home deal. So, in either case, an unreasonable timeline can make your offer less appealing and you might lose out to another buyer who offers a more reasonable timeline.
Hence, pick a closing time that works for both of you and the seller of the condo for sale in Brampton. You can do this by asking your Realtor to find out if the seller has any specific requirements for the closing date and fix a timeline accordingly.
REASON #5 - Offering a Low Earnest Money Deposit
One of the key things that can make or break your deal is the earnest money deposit. This deposit also known as a “good faith deposit” is the amount of money you put down when submitting your offer to show the seller you’re serious about buying the property. Typically, the earnest money deposit should be around 1% to 3% of the purchase price of the condo.
Sellers prefer a big earnest money deposit because it gives them confidence that you’re a committed buyer less likely to back out of the deal. But if your deposit is too low, the seller might feel uncertain about your intentions and may worry that you could walk away from the deal.
So, if possible, consider offering an earnest money deposit on the condo for sale in Brampton that’s closer to 3% or even higher. This will signal to the seller that you’re fully invested in buying the condo and are unlikely to back out.
To sum up, by sidestepping the above-mentioned mistakes, you can improve your chances of getting a price offer accepted and securing your dream condo. Happy homebuying!