So, you found the house of your dreams, and submitted what you know is a good and fair offer. Quickly, your agent comes back with the devastating news that the sellers rejected it. You are certain that somebody didn’t come in with a higher bid, so what in the world happened? You’d be amazed by the reasons that some sellers will turn you down.
Looking Risky on Paper
The first reason would be if you don’t look like a good buyer on paper. You might submit a great offer, but look like a poor risk for getting a quick closing. Things that can spook sellers include a high debt-to-income ratio, iffy credit, and a low down payment. Sellers want a buyer who won’t trip up the closing process with problems at the bank, so make sure your credit and finances are pristine before you step up to bat.
Offer letters can be deal-closers, but they can spectacularly backfire under the wrong circumstances. In an ideal situation, an offer letter gives a personal touch to the business transaction and lets the sellers know who you are and how much you love the home. But sometimes, spilling too much can break the deal. For instance, if you see the home as a fixer-upper and detail extensive plans for demolishing existing rooms and completely revamping, the sellers may get offended. Also, if you are enclosing an offer letter, have someone read through it first for spelling and grammar issues. It sounds picky, but some people are very sensitive to these things and might look down on you for sending a letter riddled with errors.
Bidding too High
Another newsflash of a deal-breaker could be that you offered too much for the house - and yes, this is a real thing. Sellers love a bidding war, but making an offer that’s too generous could end up with you failing to get financing from the bank because the house doesn’t appraise that highly. Again, buyers want a sure thing when it comes to an easy and straightforward closing. A sky-high offer might ring the wrong bells.
Adding Aggravating Extras
Yet one more thing that can lead to irate sellers and rejection is if you try to pull one over on them with your offer. Maybe you made a full-price offer, but you demanded ten grand for closing costs. Or your offer was good, but it came contingent with the sellers throwing in items that you know they intended to keep, like the appliances or a high-end light fixture. Some buyers get extra-greedy and demand the furniture as well. Aggravate your seller at your own peril.
When making an offer on a home you really like, take the time to step back and think of the picture you are presenting to the owner(s). Is it a likeable and respectful one? Or does it somehow offend or trouble? The difference between an accepted and declined offer hangs in the balance.