Picture this… You’ve finally found the dream home that covers all of your needs, nestled in a beautiful neighborhood, and you write an offer that gets rejected. Now you’re left with the questions: Why did my offer get rejected? How can I make my offer more competitive? Will I ever find a home?
If you’re looking for a home in the current seller’s market, you can probably relate to this scenario. But, when your offer gets rejected on a home you’ve already envisioned your life in, it’s hard not to take it personally. Even with the high demand and low inventory, here are some ways to deal with offer rejection and how to create an action plan moving forward.
Why Was My Offer Rejected?
To make your position more competitive, you need to understand why your offer got rejected in the first place. It’s easier said than done. There are many reasons why offers get rejected. To name a few:
- The seller might have preferences when it comes to financing.
- You’re stuck in a bidding war, and your offer happens to be lower than others.
- The seller has unrealistic views of how much their home is worth.
- Your offer was complicated with too many requests or contingencies.
- You don’t meet the seller’s needs. For example, they might prefer a tighter closing time frame.
When to Move on
There are some situations where you might go back and forth with the seller to reach an agreement, and your offer still gets rejected. Or, you’re in a bidding war and you just can’t meet the price of your competitor. Knowing when to step away and look for new opportunities might save you time, money, and energy in the long run.
Increase Your Chances of Getting an Offer Accepted
Team up with an expert. If you’re not working with a real estate agent already, we strongly recommend it. An experienced, local real estate agent will know the ins and outs of the industry. They’ll be able help you make a competitive offer, answer any questions you may have, and find out if there are any strong offers on the table.
Offer more. In this fast moving market, one of the best ways to stay competitive is to simply offer more money. If you have a feeling the property is a hot commodity, you may have to put your best offer forward to be considered. Your real estate agent will be able to do some investigating to see where your offer stands and where you need to be, in comparison to other offers.
Consider Other Terms. Sometimes for sellers, selecting an offer isn’t just about the money. Timing, for example, can be a critical element of an offer. An experienced real estate agent should be checking on whether there are other terms that are important to the sellers. If sellers are buying another home, you may score some points by agreeing to let them continue to occupy the home after close of escrow.
Write a love letter. Writing a letter to the seller might help them put a face to a name and take your offer more seriously. In your letter you can include what you love about the home and how you envision your life there but be careful, don’t include details that could trigger Fair Housing Violations. Here are a couple of details not to include in your letter: Age, Race, Religion, Familial Status and National Origin. Learn more about love letters in our Home Buying 101 episode here.
If you’re looking for a home in Long Beach, give us a call at 562-896-2456! We’ve been serving the Long Beach area and helping home buyers since 1998.
