Hi readers! Ben here yet again.
Here’s a another update from me this week. First of all, I want to thank you for loving my last blog post. It inspire me to write again 🙂
If you think your house hunting or deal comes to an end as soon as you make that final offer, then you are wrong. Malaysian home owners, even when they have already agreed verbally about ‘getting the deal closed’ with you does not necessarily mean that they will have the deal closed for your benefit.
Recently I have been getting emails from our buyers who invested in Kirana Residence offer the other day (if you have missed the flyer, then send us an empty email at firstname.lastname@example.org and we will put you in our special list). It seems that the rejection rate is kinda high for that property…
You see, as long as that final offer for has yet been signed, they can always reject your offer. That is why it is extremely important for you to make certain that your offer is rejection-proof. For one, you have to make sure that everything that you’ve talked about in the preliminary talks would be incorporated in the written offer.
Also, you have to make sure that your offer contains everything that they need to know about your offer – how much you’re willing to pay for their house, when you intend to pay up for the house, what conditions you have for paying for the house as well as, and more importantly, how you intend to pay the house. And since you are likely to pay up the house via a mortgage loan, it would be best that your offer comes with the necessary documents about your mortgage loan (as an assurance of sorts of your capacity to pay).
Reasons Why Your Offer Would Be Rejected
Two, you have to make certain that your offer does not fall to any of these rejection situations:
- The Malaysian home seller ended up changing his mind about the final price. You and the home seller may have agreed on a bargained final selling price of the house, but he somehow changed his mind overnight and forgot (intentionally and unintentionally both) to notify you or your agent about it. So when he gets your offer with the lower final price, he decides on it with a no. Make sure that you’ve convinced your seller that the price is not bad enough and convince him enough for him not to change his mind. (It would be best that you talk to both owners and not just the husband *Wink*)
- Someone else came up with a higher offer. This is a very common scenario in a hot house. You’ll have to compete with tons of other buyers and if one of them happens to be willing to go the distance on the final price, there is really nothing you can do about it. You can either give up and look for another Malaysian house, or compete with the bigger offer which isn’t always the wisest thing to do anyway.
- Your contingencies are not satisfactory for them. The contingencies are the conditions that need to happen/be fulfilled before the final sale of the house takes place. If you have listed contingencies that are too difficult for the owner to achieve, or at least too costly (i.e. roof repair), or your end of the conditions (i.e. present a complete set of papers for mortgage) do not meet their requirements, they may reject it until you give them something more satisfactory.
- Your offer lacks some very important requirements. You may have forgotten to indicate any of the essential details of the sale and thus it seemed unsatisfactory for the home seller. Until you fulfill that, they may have to say no to your offer.
- There is something that they don’t agree on. Maybe your down payment amount was too small for them, or your promised pay date is a little too late for their preference. It could be anything on your offer that they don’t agree on. In these cases, it is best to resume talks and renegotiate on the whole offer.
Keep those emails coming in! And if you are going to MAPEX, remember to come over to say hi! Details on that expo can be found here.