Common Reasons Offers Get Rejected

Common Reasons Offers Get Rejected

  • Emily McHale
  • 06/7/22

In the current market, most sellers can afford to be picky with what offer they accept. This is also true of landlords who own rental properties. Especially in the wake of the pandemic, landlords are more concerned than ever about ensuring they select a trustworthy tenant who will pay their rent. In the last few months we have seen renters having a harder time securing a place, including great tenants who look good on paper.

Rejected offers should be evaluated on a case by case basis however, these are a few common reasons that offer get rejected:

Your price was too low

It is not uncommon for sellers to have unrealistic expectations of what their home is worth. This can become problematic when they turn down solid offers because they have a specific number in mind. Although agents typically try to manage their clients expectations, there are several reasons why a client might be unreasonable in what kind of offer they are willing to accept.

It is also possible that the offer was too low and it offended the sellers. A low-ball offer can turn a seller off; this is a home they have created a life in over the course of years, maybe decades. They want to see offers that reflect the time and love that was put into their home while they lived there, especially if they made several improvements to the property.

There was a stronger offer on the table

Even if you go in with a solid offer, its always possible to lose out to a stronger offer. There are a few possible factors that would strengthen an offer;

  • They offered more money
  • They listed fewer or no conditions
  • They are in better financial standing or offered a larger downpayment
  • They are more desirable tenants (common with leasing)
  • A more desirable closing date
  • It was a firm offer without financing conditions

Your deposit was too small

A good deposit suggests that you have the financial means to make the purchase. This shows you are in good financial standing and that you are more likely to be able to withstand any issues that may arise. Buyers with low down payments are sometimes seen as riskier than those who put down more.

Concerns about financing

This is especially seen in the case of rentals, landlords may be concerned about the stability or reliability of employment. Even if the applicant makes a good salary, if the job is unstable the landlord may fear that they will be left in a bad situation if the tenant can no longer afford the rent, won’t leave, or does leave and the landlord has to search for another new tenant.

In the wake of the pandemic landlords have become even more concerned about securing tenants they can trust will not have any issues paying their rent. For instance, one of our associates recently had two clients with great credit scores and making great salaries. However, most of their income came from serving jobs which could be seen as unreliable, particularly following the Ontario closures which put many people in the service industry out of a job.

Personal reasons

Selling a home can be emotional, especially if it is a particularly sentimental property to the sellers (they raised their children there, they grew up there, etc.). It is possible that they might decline an offer based on the fact that they don’t believe those buyers are the right fit for the home.

Final Thoughts

Having your offer rejected after falling in love with a home can be incredibly discouraging, especially if it happens more than once. If you’ve had a few rejected offers, it might be time to adjust your strategy. Always speak with your agent to find out how you can improve your offer and make it more appealing to a seller. Remember to keep your head up and keep trying; your perfect home is out there!

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We have experience in many different areas of real estate and we would be happy to assist you with whatever you need. Whether you’re looking to buy, sell, or invest, please don’t hesitate to reach out!

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