Did Your Purchase Offer Get Turned Down? Read Why
It can be surprising and frustrating when you get turned down by a seller. Unfortunately, no matter how fair you felt your offer was, sometimes another buyer gets the home. To help you understand the reasons why most sellers reject offers, read on.
Possible Reasons for the Offer Rejection
Keep in mind that you may not always be able to find out why your offer was rejected. There is no rule or expectation that the seller reveals a reason. However, you can often find out by asking your real estate agent. Here are some common reasons for turn-downs.
- Higher Offers – The seller would be pretty foolish to accept a lower offer, even if that offer came in first. In today's hot real estate climate, sellers may receive multiple offers and be able to pick and choose the higher one. For example, the seller may decide to collect offers over a weekend and then make a decision on Sunday night.
- Lack of Financing – Sellers are more likely to gravitate to buyers who already have a way to pay for the home. If you plan to pay cash – perhaps you have cash from a recent home sale, expect to show proof of those funds with a bank letter or bank statement. If you plan to use a mortgage to finance the home, have a letter of preapproval from a lender. This provides the seller with confidence that the deal won't fall through due to financing.
- High Expectations – Some sellers set their sights on getting offered more than the asking price. This might be because they were just hoping for some extra cash or it might be because they needed more money to satisfy the existing mortgage. As long as your offer is based on the market value of similar homes, all you can do is move on to the next house.
- Offer Too Low – It's perfectly natural to set your offer price below the asking price and then negotiate upwards. Unfortunately, if your offer is insultingly low, you might have killed any hope of that house becoming your own. Sellers can have an emotional attachment to the home and will look negatively on offers they deem "low ball".
- Too Many Concessions – All real estate purchase offers contain concessions. The problem could be the number or extent of such concessions. Concessions are often based on local customs and the real estate market.
Reach out to a real estate professional that has real estate listings near you.