We all know rejection sucks.
House hunting is a very emotional process. Finding a home you really love only to have your offer rejected can be confusing and frustrating. The experience can feel personal and leave buyers apprehensive to make another offer.
But, the fact of the matter is that offer rejection is a very common part of the process, especially in seller's markets. Some might even call it a right of passage on a buyer’s journey to homeownership. As the saying goes, “No pain, no gain.”
While there’s no real roadmap out there that will steer you completely clear of offer rejections, there are some things you should consider prior to making your first offer that can increase the odds of having your offer accepted:
1. Get your financial "ducks in a row"
You'll want to engage a reputable lender well before you submit your first offer and get fully pre-approved.
Being pre-approved differs from being pre-qualified because pre-approvals usually involved a hard credit pull, while pre-qualifications do not. Pre-approvals give a more concrete picture of a buyer’s creditworthiness. This is why many buyers will explicitly request that buyers be pre-approved before submitting. You can read more on the difference between the two documents here.
2. Find the sweet spot
You should aim to offer a price that's high enough to be competitive, but still within your budget. Reviewing comps for the property is a great starting point.
Comps will give you an idea of what you can expect the property to sell for, given the selling prices of similar properties in the same area.
3. Write a great letter to the seller
According to one Open Listings agent, “Even the best letter won't offset a low price. However, if you are close to or matching the highest price, a compelling letter to the seller can often sway the decision in your favor.”
Your offer letter to the seller is an emotional plea to the seller. As a buyer, it’s your opportunity to show the seller who you are, and why you are the best person to buy their home. The best offer letters are concise, focus on the aspects of the home that the buyer loves, and help the seller connect with the buyer. I
It’s no secret that sellers are more likely to accept the offer of buyers with whom they feel they can relate. Your offer letter is the perfect opportunity to add a sense of human connection to a process that can sometimes feel very transactional.
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