Buying a home is never a straight-forward process. Many factors affect its progress, which is why it’s common for purchase offers to get rejected. If this has happened to you, don’t take it personally as there could be any number of reasons the seller wasn’t able to accept it. Let’s take a look at some of the more common reasons your purchase offer might get rejected.
Your Purchase Offer Is Too Low
Give a purchase offer lower than the list price and it’ll more than likely be rejected. Many sellers view offers that fall below the list price as insulting. They don’t think you’re serious about buying their property and often don’t even acknowledge or respond to the offer. Another reason a seller might reject or ignore a lower purchase offer is that he or she has time to wait for something better. If the property hasn’t been on the market long, or the seller isn’t in any rush to sell, a better offer may come along that will push your low-ball offer to the bottom of the list.
Your Or Your Selling Agent’s Attitude Leaves A Lot To Be Desired
Real estate is a competitive business and there’s always someone out there willing to beat your deal. As such, the seller or listing agent does not have to put up with a poor attitude from you or your selling agent. If you or your agent are aggressive, rude, or otherwise unprofessional, the seller and/or listing agent is inclined to ignore you or reject your purchase offer altogether.
The Listing Agent Represents Both Parties
In some instances, the listing agent may represent both parties in a real estate transaction. When this happens, the agent agrees to collect a commission from the buyer and lowers his commission from the seller. In situations such as these, it can be difficult competing with buyers being represented by the same agent as the seller. Unless your offer is dramatically better than the buyer’s sharing the listing agent, it’s likely it will be rejected.
Your Purchase Offer Doesn’t Meet The Seller’s Needs
Aside from getting the list price, the seller may have other specific requirements of the buyer. If your purchase offer can’t or won’t meet these needs, it will be rejected. Some of these requirements may include a larger earnest money deposit, a lengthy escrow, a refusal to make repairs, or the seller may require a pre-approval letter from your lender. As a buyer, it pays to do your homework to find out if the seller has any requirements beyond fetching the list price. If this is the case, it’s a good idea to figure out before submitting your purchase offer if you’re willing or able to extend those benefits to the seller.
If you’ve recently put in a purchase offer on a property only to have it rejected or ignored, one or more of the reasons listed above could be why. The more you understand about purchase offers and their conditions, the more likely yours will be accepted right away in the future.
- Justin
