Your Offer Was Rejected. Here Is What To Do Next.
Rejection hurts. Whether it is a break up, being passed up for a promotion, or your offer being rejected, it’s never easy to be rejected.
When we experience rejection, we’re left wondering: what did I do wrong?
When your offer on a Knoxville home is rejected, the reasons for the rejection aren’t always clear cut. Maybe there was another better offer. Maybe your financing didn’t seem secure enough. Regardless, the seller isn’t required to let you know why they rejected your offer.
In this post, we’ll cover some of the common reasons why a seller will reject an offer. This can help you understand why your offer may have been rejected so the next time around you have better odds of your next offer being accepted.
Reason #1: Your offer is too low.
Price is a huge reason why offers are rejected. It’s the most common reason an offer is rejected.
When homes are receiving full price offers, if the price you offer isn’t reasonable, your offer is likely to be rejected or overlooked. This is especially true when homes are new to the market.
When a home is new to the market, the seller may expect to receive multiple offers or full price offers if they priced their home competitively. So, when you go in with a low offer, there’s a pretty high chance your offer will be rejected. The seller will likely want to wait to see if another offer comes along.
Alternatively, if a home has been on the market for awhile, there may be some more room to negotiate on price.
Moral of the story: Price is something to think about before writing an offer. If the home is the right one for you, be sure to talk with your realtor about what a reasonable offer is.
Reason #2: You seem like a risky buyer.
When a seller accepts an offer, they want to be sure that they will close on time. Unfortunately, there are certain times where a buyer may raise some concerns about their ability to secure financing or how much they really want to buy a house. In those cases, a seller may decide to pass on the buyer out of concern.
Here are a few red flags that may cause a seller to pass on your offer:
- Mortgage company is unfamiliar. An out of town mortgage company with a bad reputation can cause a seller to question whether or not you’ll make it to closing on time.
- Low down payment could cause a seller to pass since funds may be tight.
- Buyers that give the impression that they could take or leave the house. If a buyer appears aloof, this could cause the seller to question whether or not a buyer is serious about closing.
- You include a lot of contingencies that make getting to closing difficult.
Moral of the story: Little things can cause a seller to get spooked when accepting an offer. Make sure to secure financing from a local, reputable lender and remove any complicated contingencies, if possible. You want to appear confident and dependable when you write an offer.
Reason #3: Your offer was too complicated or asked for too much, even if the price was right.
Keep your offer simple. Selling a house is enough work, but dealing with a complicated offer can make the process so much worse. Sellers are able to pick and choose what offers they want to work with in a seller’s market.
When you write an offer, try to make it as clean as possible. If at all possible, eliminate any unnecessary contingencies. If you can avoid writing an offer that is contingent on the sale of another home, as that can sometimes make a seller nervous closing on a back to back sale.
Here are a few other tips to writing a clean offer:
- Write at the right price
- Avoid asking for too many concessions (if you need seller paid closing costs – take that into account with price)
- Agree to inspect the property quickly
- Show you’re serious by increasing your earnest money
Moral of the story: Sellers just want to make it to close with as little drama as possible. Don’t make your offer overly complicated or ask for too much.
Are you thinking about buying your first Knoxville home? Are you unsure of where to start? Don’t worry – you’re not alone. We’ve helped countless Knoxville first time buyers buy their first home and we’d love to do the same for you. Shoot us a text, email, or give us a call today. Rick can be contacted at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.