There are numerous ways to ensure that your offer to buy a Boise Idaho home will NOT be accepted by a seller, including:
No Loan Commitment
It’s always best that you meet with a lender and get pre-approved before making an offer to purchase.
Saying that you intend to apply and get approved if the seller accepts your offer is not a winning strategy.
Few sellers will take you seriously if you can’t prove (upfront) that you can obtain financing.
No Earnest Money
Believe it or not, I still see offers with a promissory note in place of actual earnest money.
You might be taken more seriously if you offered your Tanzanian pygmy goat as consideration.
Plan on putting up some real earnest money if you want a seller to take you seriously.
Small Earnest Money
While not as bad as “no earnest money”, a small amount of earnest money is a dead giveaway to a seller that you’re weak.
Small earnest money amounts tend to create doubts about your financial abilities and commitment in the minds of both the seller and listing agent.
Neither the seller nor the listing agent want to tie up the property with a buyer who may not be able to close.
$500 earnest money isn’t serious earnest money!
A 90-day escrow is not going to be very tantalizing to a seller who wants to close and get moved.
A motivated seller will usually want to close within 30-45 days, so time your offer so you can close within that time period.
If your offer is contingent upon getting your insurance settlement within the next 30 days, or contingent upon your Aunt Harriet loaning you the money for your down payment, most sellers will not take you seriously.
Normal contingencies include loan approval, inspections, and/or perhaps getting the job offer you are expecting.
Contingencies must be clearly-defined and resolved within a short time period if you want a seller to seriously consider your offer.
I have seen offers with as many as 16 missing items, such as closing date, responsible broker, time allowed for acceptance, escrow company, and even the buyer’s signature!
Few listing agents will encourage their seller to accept an amateurish, incomplete offer because they know what lies ahead if the transaction makes it into escrow.
And, my favorite . . .
If the home is worth $250,000 and you know it, what’s the point in offering $200,000?
Do you really expect a seller to negotiate with you after you insult them with a lowball offer?
A lowball offer will result in an outright rejection vs. a counteroffer in many situations.
The bottom line?
If you really want to buy the property, get your financing pre-approved and craft a sensible, solid offer that will appeal to the seller.
If you don’t care if you get the property, don’t waste everyone’s time with an offer that has little chance of being accepted.
During his 45 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.
Phil is one of only ten local Realtors® (of nearly 5,600) honored with the coveted “Realtor® Emeritus” award from the National Association of Realtors®, recognizing 40 years in real estate.