Home Buyer & Home Seller Guide

Several consumers go through the heartache of putting an offer down on a house only to find out that it has been rejected. As a homebuyer it is never easy to have your home offer turned down as once you have your mind set on your property, there subconsciously exists a connection with that property. As a homebuyer it is always beneficial to know why your offer on a home may have been rejected. Listed below are some common reasons:

Home Buying Offers:  Common Reasons For Rejection

1. The Home Offer Is Too Low: This is one of the primary reasons why home offers get rejected. Prospective home buyers make the rookie mistake of just throwing out a figure to see what the seller will expect. If your offer is way below the expected market value of the home, you may end up having your offer rejected straight away. Prior to making an offer you must put some thought into it. Check what the average prices of properties in that suburb or area are and then compare it to the asking price of the seller.
2. Emotions:  Once you make a low ball offer on a property which is way below the asking price of the seller, in a lot of instances the seller may feel offended. This gives rise to issues of credibility where the seller starts feeling that you may either not be good for the money judging from your offer on a home or that you feel the sellers property is not worth as much. Either way you do not want negative emotions associated with the purchase or sale of the property as this will eventually lead to the falling through of your offer.
3. Bad Representation: In certain cases your home offer may fall through owing to the fact that your representing real estate agent does not have your best interests in mind. While representing you the same agent may also be representing a competitive buyer and may be undercutting you owing to the fact that he/she is getting a higher commission slice from the other party. Another instance may be where the real estate agent severely lacks social skills and offends either the seller or the seller’s agent. Either way it would give rise to a situation where you end up losing the property.
4. Buyer Did Not Match The Seller’s Criteria: The crux to this situation is a severe break down in communication. A buyer can never know what the seller’s criteria is unless the question has been asked. The seller may have several issues like: wanting a cash deposit, having concerns about the conditions of the house, or may even want to see the buyers’ pre-approval letter etc. Unless you clarify exactly what the seller’s criteria is you can never be sure how to go about getting around pleasing the seller.

In addition to the above mentioned reasons, a very common blunder is where sellers put themselves into a corner by making home offers like “take it or leave it”. This means that you have laid your cards on the table and cannot go any further. While negotiating make sure you use small increments. Never go all in. At the same time do not low ball the seller and remember to make offers on a home which are researched.