Why didn’t I get a counter offer?
Multiple offers continue to be a common occurance in the Silicon Valley real estate scene right now. When there are an abundance of home buyers for one property, it can be overwhelming for the seller. Some home owners may want to issue a multiple counter offer to the best qualified, most serious bidders. But not all do. You should never count on it.
Sometimes property owners in the San Jose area simply accept the best offer. If so, that’s the end of the story. It does happen.
Often, the highest price is not the offer with the best terms, even in a bidding war. Home sellers want both, of course – the least risk with the most cash. (Sometimes there are other factors, too, such as a rent back, escrow length, or other issues beyond cash and risk.) In those cases, frequently the Realtor or real estate sales person (the listing agent) will coach the seller to counter one or more of the better buyers (best prices and terms) to improve the final sale on both counts. Some sellers don’t want to do this, though – it’s stressful, they are afraid that everyone will say no and they’ll be left with the property unsold. Alternatively, then, they may counter only one offer – and tell the buyer’s agent that they are the only one, at least for now. If negotiations don’t work with the first buyer, the listing agent may go back to the others.
Meanwhile, everyone waits, everyone wonders what’s going on. The longer it takes to hear back, usually the lower the odds are that their contract will be the successful one, or even one getting a counter offer.
Why didn’t I get a counter offer? Why didn’t the seller at least give me a second chance? Buyers wonder this all the time. Some buyers submit 5 or 10 offers, all unsuccessful, and they still wonder. The harsh reality is simple: your offer wasn’t good enough. Either your price or your terms (or supporting documents) didn’t cut it. Write your contract as if you only have one chance, because that’s the reality most of the time.