Putting in an offer is one of the most exciting steps when buying a home… As an agent, one of my favorite calls to make is when I get to inform my buyers that their offer has been accepted! Hopes are high as the buyer and agent – and you constantly feel on edge just WAITING for your phone to ring.
And… BOOM! You receive the call, and the homeowner rejected your offer. It can feel so discouraging and disheartening when your offer gets rejected, and it makes you start to question: Why? What went wrong wrong? What could have gone differently?
Here are 4 common reasons your purchase offer are typically rejected.
The Sellers Received a Better Offer
When the market is hot, homes will typically receive multiple offers, which means the chance of a competitive buyer putting in a better offer than you is high. Obviously, you can’t control other offers – but you CAN control the offer you submit, so if you have your heart set on a specific homes, make sure to put in the strongest offer possible.
This is why its so important to have a great realtor in your area on your side. They can speak with the listing agent and see where you offer would stand before submitting so you can try to minimize the risk of a rejected offer.
Your Price Was Too Low
This is usually the most common reason for an offer being rejected, as a low-ball offer can feel insulting and offending to the seller. If you find the homes of your dreams and want to make sure you put in a solid offer, you may want to re-consider if you’re thinking about offering below asking price.
Your Offer Had Too Many Contingencies
Sometimes the highest price doesn’t always win! If you offer has too many contingencies, it may drive the seller away from accepting. Especially when the sellers have other offers to review, you want to be sure you WIN the bidding war – which means you’ll want to have the best offer on the table.
Your Finances Aren’t Set
You should be aware of the importance of getting pre-approved for a mortgage! As a home buyer, its crucial to have your finances set and a pre-approval letter in hand so the sellers know you are serious and ready to buy.
In a hot market, specifically, having a pre-qualification letter may be required before you even begin the home showing process.
Losing out on a home due to a better offer is never fun but hand in there! Working with a good realtor and being patient will eventually pay off.⠀⠀⠀
These are just a few of the most common reasons offers are rejected.