Updated: Aug 20, 2018
You finally found the one! You found the home you are ready to put an offer on! But it was rejected. Nobody likes being rejected. Even if it’s not personal, like when a seller turns down your offer on a house, it sucks and it feels like a major setback.
“What the hell happened?” will probably be the first question you ask your agent when you get the news. At least you don’t have to wait long. By law, your offer must be accepted or rejected in 24 hours. We know that won’t make you feel better, but you should know that getting rejected has nothing to do with you and everything to do with the offer and market.
Here are a few common reasons your offer may get rejected:
YOU LOW BALLED IT
Simply put, you offered less money than the seller thought was reasonable.
The seller received a higher offer from another buyer (or multiple buyers).
Maybe the seller had a preference for all-cash buyers and, though you were pre-approved for a loan, you weren’t qualified in the seller’s eyes.
SPECIFIC TERMS WERE NOT MET.
Your offer amount may have been fine, but perhaps the seller needed to close quickly and you couldn’t agree to those terms.
The debate of a local lender vs an online lender may find itself in your offer. Certain sellers and realtors may not feel comfortable with certain lenders. It may have nothing to do with you, but everything to do with their personal experiences with that particular lender.
If this comes up, see if you can present a letter from another lender. This could buy you time.
SO WHAT DO YOU DO?
In any case, the disappointment of a rejected offer can be difficult to deal with. But you have to think of the seller’s perspective. But here are even more tips on dealing with the rejection
1) Remember the seller doesn’t know you and they may also have an agent that will offer them advice to say no
2) Talk to your agent. Ask them about the price, the negotiation process and what leverage do you have. Leverage is the state of the market, your desire to close fast, your pre-approval amount and you down payment.
3) Take another approach on offer. Think market first and price second. Simply put, look for a home that may have been over looked.
4) Widen your options. Explore different neighborhoods and consider adjusting your price range to give yourself a better chance at finding your future home.
5) Wipe away the tears, take the personal out of it and get back to it
6) Stay positive and focused. You may not be able to find a home on the first try. So do not think you will never be able to find a home you love. New homes come on the market every day, so do not get desperate. Desperation will make you put out an offer than won’t be in your best interest.