Why a Home May Sell for Less Than Your Offer
One of the questions I hear most often from readers is not about the basics of buying or selling a home, but about the behind-the-scenes details that can be confusing. A recent example came from a reader in Reno, Nevada who asked why did a house sell for less than my offer.
They made an offer on a home listed at $695,000. Their offer was $715,000 with an escalation clause that allowed them to go as high as $750,000. Even with that escalation, their offer was not accepted. They were told the seller chose another buyer at $775,000.
Read more about escalation clauses: The Truth About Escalation Clauses
Weeks later, the reader saw online that the property sold for $740,000. Naturally, they were frustrated. Why would the seller accept $740,000 when they had been willing to go up to $750,000?
This is actually a very common scenario, and there are several reasons how I can answer the question of why did a seller sell for less than my offer.
Inspection Negotiations
After a seller accepts an offer, the buyer usually has the right to conduct an inspection. Inspections almost always uncover something, and buyers then have the opportunity to renegotiate. In fact, one of our readers recently negotiated a $45,000 reduction after inspection because of a roof issue.
In Reno, it is entirely possible that the original buyer had an accepted contract for $775,000 but then renegotiated after inspection, bringing the final purchase price down to $740,000. For many sellers, moving forward with a known buyer at a lower price is easier than going back to market and starting all over again.
Appraisal Issues
Another common reason is the appraisal. If a home does not appraise for the agreed purchase price, the buyer and seller may renegotiate. Unless the buyer had an appraisal guarantee in place, the seller may be forced to accept a lower number.
Read more about appraisals: Low Appraisal? Here’s How to Save Your Home Sale
Special Assessments and Fees
In some transactions, especially with condominiums, unexpected costs like special assessments from an association can change the deal. Buyers and sellers often negotiate these fees, which can lower the final sales price.
The Importance of the Buyer’s Agent
There is also a less obvious factor at play. Sometimes when two offers are close, listing agents may recommend the seller choose the offer represented by the agent they know and trust. Even if it means accepting slightly less money, sellers often value a smooth transaction. An agent’s reputation for being reliable and professional can carry real weight.
What This Means for Buyers
While it can be disappointing to see a home sell for less than your top offer, most of the time there is a clear explanation. Inspections, appraisals, fees, and the influence of experienced agents all play a role. It is usually not about unethical behavior or your offer being ignored.
Final Thought
Buying a home is rarely straightforward, and deals often change between the initial offer and the closing table. The question of why did the seller sell the home for less than my offer is common. What matters most is having the right agent by your side to guide you through these situations and position your offer in the best possible light.
If you are out there searching for a home and want guidance, I am happy to answer your questions. I can also connect you with a trusted real estate professional who will help you not only win the deal but also support you throughout the entire process.
