Buying a home is a process and it can be difficult to find just the right home for you. That is just one of the reasons why it can be so irritating to have your offer rejected once you've located that home. There's an array of factors influencing a home offer rejection and some of them are going to be out of your control. Take a look at the list of possible reasons for your purchase offer rejection to see if any ring a bell with you.
The Offer Was Too Low
In most cases, you can find out the reason for the rejection by asking your real estate agent. Particularly when the reason has to do with the offer price, agents are often forthcoming. If your offer price fell short of what the seller wanted or they are considering a competitive (and higher) offer, this information can help you adjust your price and make a new offer. If not, at least you will get an idea of what your dream home might cost. You should know, however, that neither the seller or any real estate agent is compelled to provide you with information about other offers. It's in your best interest to ask your agent and get all the information you can about the offer rejection.
The Offer Was Insulting
Sellers who are emotionally attached to their homes (and many are) may reject what they consider a too-low offer even if it's in line with the market price. This can occur often when you happen to be among the first to make an offer on the home or when the home is for sale by owner. As long as you are in consultation with a real estate agent and your offer is appropriate given local market conditions, there is little you can do about sellers who are expecting too much for their home.
The Offer Was Complicated
An offer to purchase a home often addresses more than just the selling price. Concessions are commonly added on to sales contracts and they can sometimes make the deal more complicated. Common concessions include:
- Asking the seller to pay closing costs.
- Asking the seller to make certain changes or repairs on the home.
- Asking the seller to leave behind certain items (like a hot tub or a chandelier).
Naturally, concessions can annoy sellers, particularly if a competing offer has fewer.
The Offer Came Without Financing
It's common for buyers to be pre-approved before they begin shopping for a home and sellers may reject offers from buyers who show no signs of being able to attain financing. It shows how serious a seller is to go through with the sale and that not only impresses sellers but can improve the buyer's chances of having their offer accepted.
To find out more about why your offer on a residential property was rejected, speak to your real estate agent today.