So you found the perfect property. It checks off everything on your wish list and is in your budget. Your real estate agent submits your offer to the sellers, and you cross your fingers. Everything seems like it is going according to plan when suddenly, you get terrible news.
Your offer on the property has just been rejected.
There are a number of reasons why your offer on a property could be rejected, and a number of things you can do to remedy the situation. Here they are:
1). Your Offer Was Too Low: The most common reason why your offer on a property could be rejected is that you did not offer enough money. Sellers know what they want to sell their home for, and many will be stubborn on that price. This is fair: they want to make a profit off their home, or at least break even.
If the asking price is reasonable, you either need to offer more money or do something to make the sale worth it for the seller (like allowing them all the conditions they want). Other times the property may be priced WAY over what it is worth. Have your real estate agent talk to theirs. If they are still unwilling to budge, move on. You cannot negotiate with someone who is being unreasonable about the perceived value of their home.
2). Someone Made A Better Offer: Sometimes, as a buyer, you will be competing with other buyers to get your dream property. If your offer is not competitive enough, you may lose to someone else. This happens most often during a seller's market, where inventory levels are low, forcing more people to compete for one home.
If you are in this situation, roll up your sleeves and figure out what you can do to set yourself apart from the other potential buyers. Offer more money, find out what conditions they want and offer those exactly, provide references and get friendly. Make yourself accessible and transparent, a clear green light.
3). Your Finances Were Not In Order: Sellers want to know they can count on you to actually be able to afford their property. Nothing is worse than having to go back to the seller's agent and explain why you need a price reduction. Chances are your purchase will be terminated and they will find a more reliable buyer.
This situation happens when people get over confident in what they can afford and fail to get pre-approved for all financing. The solution to this is simple. Get pre-approval for your finances, such as mortgage payments and down deposit. Showing a seller that you have a cheque ready to sign and money waiting to be deposited proves that you are serious. You will need to get approved eventually, so do it now!
Your Real Estate Professional,