When you make an offer on the home of your dreams, the last thing you want is to receive a rejection letter. Rejection is never easy and can be extremely discouraging, especially for first-time homebuyers. You might wonder what went wrong and what you could've done differently.
There are several reasons why a seller might reject an offer, but it's helpful for buyers to know the most common reasons to avoid losing out on the home of their dreams.
Here are 6 common reasons a seller may reject your offer:
1. Your offer was lower than the asking price, and the sellers want more for their home (there's also a chance they felt offended or insulted by your lowball offer).
2. You didn't submit a pre-approval or pre-qualification letter with your offer. Without a mortgage pre-approval or pre-qualification letter, the seller has no idea if you can qualify for a mortgage or not.
3. Your offer had too many contingencies, making the seller worry about the transaction closing smoothly and on time.
4. The sellers received a stronger offer and accepted that one instead of yours.
5. Your time frame didn't work for the seller. If you are in a rush to move in, but the seller is buying another home and hasn't found one yet, they may need to find a buyer with more flexibility.
6. You didn't include any earnest money with your offer. An earnest money deposit is made to a seller with your purchase agreement, representing a buyer's good faith in buying a home. If you back out of the deal due to a change of heart, the seller will get to keep your earnest money. An offer without earnest money is more likely to be rejected by the seller, as they may assume you aren't serious about purchasing.
Have questions about the home-buying process? Send me a DM or comment below — I'd love to connect and chat more with you!
Posted by Paul Lamba on
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