Making Offer on HomePath home

[John Moon]

Hello,

I made an offer that was 22,500 lower than what the asking price was. I signed the contract and gave it to my agent. He got back to me saying that the selling agent was appalled at the low offer and rejected.  He think they might accept an offer 15,000 lower than asking instead and thats what he suggests. 

I have 2 questions in this situation.

1) How do I know if my agent actually made the offer to the selling agent?

2) Does a rejection look like anything? 

Thanks for the help and insight! Just trying to learn.

John

[Hal Thompson]

@John Moon If you don't trust your agent to actually make the offer, then time for a new agent.

Typically, a rejection is not in writing or formal. Offers require mutual acceptance, but there is no requirement for a formal rejection. The offer is only binding if both parties accept.

I have bought a number of Homepath homes. Generally, they will not make major price concessions. There is probably a 5-10% price negotiation window for Homepath homes, depending on how long they've been on the market. Anything over that and your offer will almost certainly be rejected.

One of the tricks of the trade for Homepath homes is that they drop the price every month or two. So if there isn't a lot of interest, keep waiting and eventually you'll get to a price you like. We've bought some insanely cheap stuff from Homepath this way, but that was 5 years ago. The market is different now.