Can a Seller Decline a Full Price Offer?
Sellers aren’t required to accept every offer for their house, no matter what price it is. They may have other offers or may prefer to wait for more money. A seller might reject an offer in these cases even though it is at or above the asking price. So can a seller decline a full price offer?
The seller and buyer may be affected as well as any agents or real estate brokers involved. You, the seller should consider all the consequences before you reject a full-price offer.
You may get a full-price offer when you sell your house and feel disappointed. It is possible to wonder if you have underpriced your house. Do you need to save more?
The sticky situation could be applicable to any seller in any market throughout the U.S.
Also, it is important to avoid creating legal issues in negotiations.
Imagine a couple listing their house for $325,000. They don’t receive any offers for three months. Not even low-ball offers. They finally get a $325,000 full-price offer after three months of no action. The sellers feel that there has been a significant increase in the area’s real estate market over the three months it had been on the market. It seems that nearby homes are selling at a higher price than their actual value.
Their agent now wants them to accept the $325,000 offer, while the sellers are attempting to make a counteroffer at $340,000. The sellers are confused because their agent is refusing to accept the offer. Agents were expected to negotiate the best price possible for their clients. They worry that they will be losing money if they accept this offer.
If you’re selling a high-end home, multiple offers are normal in seller’s markets. Potential buyers may receive multiple offers, which can lead to bidding wars that raise the listing’s price.
You have less leverage if you only receive one offer. You may lose your sale if you increase the price for the buyer that is most willing to buy your house.
A full-price rejection can have legal consequences depending on the terms of your listing agreement.
There are many potential consequences if you reject an offer at full price.
Although you don’t have to accept a full-price offer legally, it is possible that you will be responsible for the commission of a real agent. A full-price sale is a sign that a real estate broker has been paid commission in some states.
If you decline a full-price offer, your agent may still owe you a commission. The brokerage believes it accomplished the job it was asked to–finding someone who is willing to buy the house at full price. It expects to get paid accordingly.
You should carefully review your listing agreement. It may include language that states the seller can’t reject an offer at full price.
The multiple listing service (MLS), where the listing was published, may also have its own rules regarding offers. MetroList MLS in Northern California has rules that state that if a seller rejects a full-price offer, they must raise it in the MLS.
Rejected offer notes in MLS could prevent other agents from recommending the property to their buyers. It can also be misleading advertising to advertise a property for $325,000 but actually wants $340,000. You must advertise your property at $340,000 if you are looking for $340,000 to buy your house.
Although the best options for the seller are obviously the top choices, it’s possible that the buyer may just want to move on. You may not be able to sell the item.
Sometimes, buyers might continue to monitor the listing. The buyers who are interested in the listing may offer a second offer if you don’t get a better offer.
There are legitimate reasons for rejecting a full-price offer. However, it is important to understand the potential consequences. It could cause issues with your agent and could also impact your property’s marketability with future buyers.
It may be worth speaking with a professional real estate agent to help you decide the right course of action.
You don’t need to accept an offer because your agent did research on your property and ran comps. If you do have concerns, talk to your agent.
Although you are not legally required to provide a reason for rejection your agent might want to do so as a professional service.