3 Possible Reasons Home Sellers Keep Rejecting Your Offer

If you find yourself missing out on houses you're interested in, these could be the reasons.

When you make an offer on a house, it can be really disappointing if the seller turns you down. Unfortunately, this can happen to any home buyer, especially in this competitive market.

Having some offers rejected is normal. But if you find yourself with sellers saying no to every attempt you make to purchase a home, your offers may be the problem rather than just the market conditions.

While there are many reasons why sellers may pass you over, there are three really common reasons why your attempts to buy may not be competitive. Here's what they are.

1. You're including too many contingencies

Contingencies are conditions that you place on the sale. It's common to include some clauses when making an offer on a house.

For example, many home buyers put a home appraisal contingency in place, which requires the home to appraise for at least the amount they're paying for it.

Home buyers also regularly include home inspection contingencies in most offers because it's crucial to ensure they discover any problems before they commit to buy a property.

But while these contingencies are typically expected by sellers, including too many pre-conditions could be a turnoff. In particular, if you make the offer contingent on the sale of your current home, sellers are likely to pass over your offer since the chances of the sale not going through would be high.

You don't want to include too few contingencies and fail to protect your interests. But be mindful that sellers don't like to have too many conditions to fulfill before you're committed. So, only include the ones that are truly important to you.

2. Your offer prices are unrealistic

You don't want to overpay for a home. But in the current red-hot housing market, you probably aren't going to get an amazing deal on a property either. You need to make sure the price you're offering is reasonable given what comparable properties are selling for.

While it doesn't hurt to lowball in a slow market and hope that the seller negotiates, chances are high right now that your offer will simply be rejected if you aren't realistic in the amount you're willing to pay in your first offer.

3. You're setting an inconvenient closing schedule

When you make an offer, you'll typically specify the date that you prefer to close on the home and complete the transaction. You'll need to make your closing date at a time when your mortgage lender has had time to approve your loan. And you'll also need to be ready to turn over the money for the home and take ownership of it.

In many cases, home buyers expect to close within around 30 to 60 days. However, if you suggest too short or too long of a timeline, sellers may not be interested. If you can be flexible with regard to when you close or work on the seller's preferred schedule, you're more likely to have your offer accepted.

Ultimately, you need to make sure you're comfortable with the amount you're paying, the conditions you put on the sale, and the proposed closing date. But if you set the terms of your offer completely in your favor, there's a very real likelihood sellers are going to pass you over for a buyer who is more willing to cater to their needs.