4 reasons an offer may be rejected

Making an offer on your dream home only to have it rejected can be heartbreaking. To help you prepare, here are four reasons sellers may have for turning down a bid.

1. It was too low
If your offer is too low, the seller may think you aren’t serious about purchasing the property. If the house hasn’t been on the market for long, they may also think it’s too early to consider offers below the listing price.

2. It was too high
Offering a lot more than the asking price is a bad idea unless you’re paying cash. This is because realtors are likely to warn their clients that the house won’t appraise for the amount bid. Once the lender realizes the loan is for much more than the actual value of the home, the transaction could fall apart.

3. It was written by your agent
Sometimes, listing agents engage in what’s known as dual agency. This means that if they represent both the seller and the buyer, they’ll charge a slightly smaller commission. The end result is that the seller will net less money if they accept an offer written by the buyer’s agent. This practice is regulated differently depending on where you are, so it may not always be a concern.

4. It doesn’t meet their needs
Every seller is unique, and it’s a good idea to find out what they need from the deal before you make a bid. They may have a specific closing date in mind, or perhaps they’ll only consider offers that come with proof of pre-approval. Your real estate agent can determine what the seller requires.

Finally, it’s rare for a seller to reject an offer without countering, so chances are you’ll be able to negotiate.