What to Do When Your Offer to Buy a Home is Rejected
You found your dream home and made an offer, but your agent just called with the bad news: offer rejected. What to do next? If your purchase offer was just rejected, it might not be too late to try renegotiating, so don't walk away without more information. Either way, it's important to turn this into a learning opportunity, because you'll probably be bidding on multiple homes in Chattanooga. Take these steps to make the most of your first failed bid.
- Find out why your offer was rejected.
Not every seller's real estate agent will disclose the reason for rejection, but it doesn't hurt to ask. Your recent rejection may be final or flexible, but either way, learning the reason will help you improve your strategy for the future. Ask your real estate agent to follow up with seller's agent, and be prepared for one or more of these common reasons:
• Price was just too low.
Did you offer less money than the buyer is willing to accept for their home? If you offered less than the value of the home, your offer will be rejected outright unless the buyer is incredibly motivated. They might even be offended by an offer that's well under asking price.
• You lost a bidding war.
Maybe another buyer offered more money – or a similar amount with more desirable terms, like waiving post-inspection requests or paying in cash. If multiple buyers were vying for the same Chattanooga house, another bid probably won. Find out what gave other buyers the upper hand.
• You didn't meet their terms.
If the seller wants to close very quickly (or live in the home for a month or two after closing) and you don't agree to this in the terms of your offer, they may dismiss it. Specific terms are usually requested because of circumstances the seller cannot change, like the completion or purchase of their next home. If you can't accommodate, consider offering extra money for their trouble.
- Restructure and resubmit your offer.
Even if you submitted your offer right before a deadline, it may be possible to resubmit with better terms or a higher price. If you were in the top pool of candidates or the sellers didn't get another offer, you have a better chance of changing the price, the terms, or both and trying again.
- Grieve a little, then get over it.
If you can't compete with the winning bid and this definitely isn't going to be your next home, don't spend too much time wallowing. You wouldn't want to make an offer on a home you didn't love, so of course you're going to feel some disappointment – and maybe even some grief – as the image of your future life in your dream home fades. But obsessing over the loss is impractical, because the longer you do it, the harder it will be to find another home that measures up.
- Change your strategy.
Now, take what you've learned and apply it to the next offer you make. Would a personal letter make a difference for future bids? Should you include an escalation clause next time, in case there are slightly higher bids on the table? You might even want to look in a different neighborhood or price range, where competition is less intense for buyers.
At Fletcher Bright Realty, we know bidding wars can be heartbreaking, but finding the right home is always worth the work. Our real estate agents are ready to help your offer stand out, so contact us today to learn more about our services for buyers in Chattanooga.