5 Things I Learned When My First Home Offer Was Rejected

When I decided to try to buy a house again a little over two years ago, I didn't realize that by the time I'd be ready, I'd be facing an all-around terrible market. Sellers have the edge here, as they've had for a while, due to a lower supply of homes for sale.

In February 2024, there was a supply of just 2.9 months' worth of houses, according to the National Association of Realtors. It takes more like four to six months' worth to equalize the market between buyers and sellers.

And rates are still stubbornly up, too -- the average rate on a 30-year fixed mortgage is 6.87% as of this writing. When I do get a mortgage, I'm basically guaranteed to want to refinance it if rates ever come back down.

Despite the difficulties, I'm out here trying. The first offer I made on a house was rejected, though. Thankfully, I was able to turn it into a learning experience with the following five nuggets of wisdom.

1. Finding one good one means there are more

To be honest, this was perhaps the lesson I needed most at the moment. It took looking at multiple houses to find one worth further consideration.

I'm not looking for a fixer-upper; after many years of renting, I am seeking a house in need of very few updates beyond paint (I crave color in my life). And since the location is one very important factor that you cannot change about a house, the ones I viewed in undesirable neighborhoods weren't going to work for me.

So just the sheer fact that I finally got to tour one in great shape, in a nice neighborhood, signaled to me that the search was not hopeless. The right house was out there for me -- it just wasn't that one.

2. Waiving an inspection is still a bad idea

The reason I was turned down wasn't one I expected. I offered the asking price for the house, and my agent built in an escalation clause up to the limit of my budget. I also wrote a check for a sizable earnest money deposit, to show I was a serious buyer. And finally, I sought a mortgage pre-approval before I started house hunting. But my offer was rejected because I refused to waive a home inspection.

While this was disappointing, I understand that the seller likely wanted as little potential hassle as possible. But I refuse to make a huge financial commitment to a mortgage without having a professional inspector look at the home first. Concerning issues coming up on an inspection doesn't mean necessarily terminating the contract. I could buy a house with known issues anyway -- but I want to know what I'm buying either way.

3. A rejection means more time to save money

A rejected offer may come with a big silver lining for your bottom line. Owning a home is expensive, and the upfront costs of down payment, closing costs, inspections, moving, and more are really just the beginning. Even if you've got the cash set aside for all these expenses, it's a good idea to keep putting money in your savings account while you search for a place to buy, if you can. The longer your home search goes, the more time you have.

4. The right agent will advocate for you as a buyer

I adore my real estate agent. She came highly recommended by friends who bought in this area in 2019 (in a much different market!), and has been in the business longer than I've been alive.

In addition to being amazing about scheduling showings on the fly and sharing her decades of wisdom, she also advocated for me in making the offer. She made sure the seller's agent knew that my finances were rock solid, I was flexible for closing, and I wouldn't have backed out of the sale for a frivolous reason.

5. Refining your budget is always smart

Finally, reaching the point where I felt comfortable making an offer on a house gave me insight into the home prices I should be targeting, based on size, location, and level of updates to the house itself.

Unfortunately, I was a bit optimistic in my original estimate of what purchase price I'd likely be looking at, but thankfully, my revised estimate is still within my original budget. And I'm all the happier that I met my original savings goal and just kept saving.

A "no" isn't a tragedy

Yes, it's disappointing to lose out on a house you could've seen yourself living in and making your own. But ultimately, there will be other houses. Every home you view is a learning experience, and every no you receive is, too. Maybe next time, you'll boost your earnest money deposit, build an escalation clause into your offer, or you'll decide to switch your focus to a different part of your town.

Try not to get too attached to any one house, and be open to the possibilities in this frustrating housing market. The right one is out there for you -- and for me, too.