Why was my Home Offer Turned Down?

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Discover Why Your Home Offer Was Declined by a Seller in Encinitas

One of the most important things to keep in mind when buying a home is that it can be a long and complicated process. It’s rarely as easy as finding the house of your dreams and scheduling a move-in date. Even if you find that perfect house and make an offer, you could be disappointed to find that the seller declined your offer.

When this happens, you may ask yourself or your Realtor, “Why was my home offer turned down?” There are many reasons why the seller may reject an offer, and here are a few of the more common ones:

The Home Offer Was Too Low

This is by far the most common reason a seller would decline a home offer. Anyone selling a house will be looking for a fair price and may also base their asking price on an emotional attachment to the property. Making a lowball offer may seem like a smart way to begin the negotiation process, but it can easily eliminate your chances of getting a home.

Not all sellers are interested in spending time negotiating and may outright refuse a low offer. If the owner has an emotional attachment that is driving their asking price, they may see a lowball offer as an insult or an indication that you aren’t serious about buying the property.

If you’re unsure what offer to make, you can always contact a Real Estate Agent in Encinitas for assistance. Their experience in the marketplace will help you determine a fair price to offer that can make you appealing to the seller.  

Your Low Earnest Money Deposit Was Too Low

Including a low earnest money deposit with your offer is practically mandatory these days. That lets the seller know you are serious about buying the home and allows you to offer a “good faith” deposit towards the home price.

Similar to a lowball offer, a low earnest money deposit can lead to a quick rejection by the seller. However, a substantial earnest money deposit can sometimes offset a low offer. The deposit can vary from $1,000 up to 3% of the home’s sale price. If your earnest money deposit is lower than those amounts, especially when coupled with a low offer, it’s likely to be followed by a rejection from the seller. 

Failure to Meet the Seller’s Demands

Some sellers have demands for special conditions that buyers must meet when negotiating a sale. These can range from a larger earnest money deposit, a pre-approval letter from a lender, and pushing back the closing date. The sale can easily fall through if a buyer doesn’t meet these demands. However, meeting these demands in a written home offer can significantly increase your chances of closing on the home of your dreams.

What Can I Do When My Home Offer is Turned Down?

Getting a rejected home offer can feel discouraging. If you find yourself in this situation, it’s essential to not take it personally and continue the search for your desired home. While it’s possible to make a home offer independently, hiring a Realtor in Encinitas is advisable for assistance. Not only can they help you craft a suitable home offer, but they will base their negotiations on the current market in your area.

Contact Realtor Linda Moore today for guidance in making a home offer and securing the property you want in Encinitas!

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