Title: Top 3 Reasons Your Offer Did Not Get Accepted
Making an offer on a property can be an exciting yet nerve-wracking experience for prospective buyers. However, it can be disheartening when your offer is rejected, leaving you wondering why it wasn’t accepted. In this article, we will explore the top three reasons why your offer may not have been accepted. Understanding these factors will help you navigate the real estate market more effectively and increase your chances of securing your dream home.
The certainty of the deal making it to the closing table is just as important, if not MORE important, than the price you are willing to pay for the home.
This seems to be overlooked for new homebuyers making offers for the first time. They think price matters more than anything. However, it doesn’t matter what you claim to be willing to pay for a house if you can’t prove that you can come up with the money when the time comes. Contingencies can also be scary. Contingencies create more potential situations that can force a deal to not close and a seller to waste 30 days or more of their time.
Let’s start with the obvious.
Reason 1: Inadequate Offer Price
One of the most common reasons for an offer rejection is an inadequate offer price. Sellers naturally want to get the best possible price for their property, and if your offer falls significantly below their expectations, they may reject it outright. To avoid this, for gods sake don’t make the rookie mistake of asking your agent “let’s just bounce a lowball offer off of them and see what happens” while sitting in the middle of a competitive seller’s market.
I’ll tell you what happens if you can handle the spoiler alert. Your offer gets rejected, another offer gets picked, and you don’t get an opportunity to counter higher. You’re out. People don’t appreciate their time wasted and will likely gravitate towards offers that feel more respectful of their time and energy. In a buyer’s market you can get away with disrespectful offers but you need to know when you are and when you aren’t in a buyer’s market.
Reason 2: Financing and Contingencies
The certainty of the deal making it to the closing table!
Another factor that can lead to offer rejection is related to financing and contingencies. Sellers often prefer buyers who present solid financing options and have minimal contingencies. If your offer is contingent upon the sale of your current home or if your financing is uncertain, it may make the seller hesitant to accept your offer. Examples of uncertain financing are lenders with little to no reputation or offers being submitted without pre-approval letters.
Yes, your choice of lender matters more than you think and I don’t just mean interest rates. If you pick a lender with a very solid reputation in the real estate community, your offer will have a greater likelihood of being accepted. Why is this you ask? Because you’ve raised the certainty of the deal making it to the closing table.
Reason 3: Poorly Executed Offer/Rookie Mistakes
Believe it or not, this gets overlooked yet it’s so easy to prevent. If you submit an offer with multiple omissions, misspellings, or without any additional proof of funds or pre-approval letter, it will make your offer far less compelling. You need your offer to look professional. Why you ask? Because it raises the certainty of the deal making it to the closing table. Have I gotten that point across yet?
Long story short, make sure to take the extra time to review your offer for mistakes. Correct all your spelling and don’t miss any tax id numbers if the real estate comes with additional parcels. Submit all additional paperwork in the same email and make it easy to find things. These little things also establish some personal connection, and honestly it can really go a long way in improving your chances of acceptance.
Recap
While having your offer rejected can be disappointing, understanding the reasons behind it can help you navigate the real estate market more effectively in the future. Inadequate offer price, financing and contingencies, and the lack of a professional looking offer are three common factors that can lead to offer rejection. By researching the market, ensuring strong financing options, and establishing some authority, you can increase the likelihood of having your offer accepted. Stay persistent and keep searching for the right opportunity, and soon enough, you’ll find the perfect home or investment opportunity.
