You’ve finally found it. Your dream home. It has that spacious, white kitchen you’ve been looking for and that cozy fireplace in the living room you’ve been dreaming of. You put down your offer – the asking price plus a little more because that’s what your realtor advised you to do. And now you’re waiting. A couple of days go by. Maybe a week. And then you finally get the message: you did not get the house.
If it’s any consolation, you’re not the only one. Especially in today’s market, securing your dream home can be difficult and heartbreaking when you don’t get it. Although your dream home may seem like it’s just slipped through your fingers, it’s not the end of the line. There are still chances for you to find another home to fall in love with. But like a bad breakup, we get that you may be feeling down that you did not get your dream home. But, we’re also here to tell you that everything is going to be ok. Who knows? Maybe it just wasn’t meant to be because you were meant to find an even better home.
What does it mean when your offer is rejected?
If you’ve had experience with buying or selling a home, you know that not every offer gets accepted by the seller. Generally, three things happen when a seller receives an offer. They flat-out reject it, provide a counter-offer, or accept it as is. If your initial offer is rejected, you can work with your real estate agent and see if there is something you can change to your offer to convince the sellers to take your offer. It may be adding more to your bid or dropping certain contingencies. Whatever you decide, we highly recommend speaking to an experienced real estate agent to figure out what you can change to your offer. You don’t want to get overexcited and drop a lot of contingencies which may end up turning into a huge pain in the butt and turn your dream home into a nightmare.
Reasons why your offer may be rejected
The most common reason why your offer may be rejected is that you’ve been outbid. There is stiff competition out there right now in the real estate market and some buyers are just more eager than others to put down a high offer. Another reason why your offer may be rejected is that your competition may have a moving date that more closely aligns with what the sellers are looking for. Other reasons can include financing requirements such as a cash offer or a higher downpayment.
Buyers who put down 3% versus 10% actually make a difference. If you can put down a higher down payment, that can communicate to a seller that you may have a better chance of qualifying for a loan and be able to handle inspections or appraisal issues. In short, you have better finances compared to someone who is putting a lower down payment. Of course, the reality may not actually be the case, but these are just some thoughts that can go through a seller’s mind.
What to do next after walking away from your dream home?
If you’re working with a real estate agent, you should communicate to them about the parts of your dream home you really loved. It is your agent’s job to take those parts into consideration and jump right into helping you find something similar. Depending on your situation, the agent may advise you on waiting to see if new listings pop up in the coming weeks or months.
Allow yourself some time to recoup and try to remain positive. We’ve personally dealt with situations where our clients have tried to put in offers for a number of homes, only to get outbid by their competition. Our best advice is to not give up and remain as flexible as you can. If you have a flexible timeline of when you want to move in, sometimes that can be your biggest advantage.
New construction may be another option
If you’re dead set on having certain features in your next home, new construction may be an excellent option for you. Although new construction homes are typically more expensive than existing homes, the low interest rates may help you secure a new home when you couldn’t before. Additionally, existing homes are frequently getting overbid in the market today. When you calculate the costs, you may find that buying a new construction home isn’t far off from what you might be expected to pay for an existing home today.
But, we also want to remain candid and not get your hopes up too much. There is still competition for new construction homes and the waiting time for one right now can be anywhere from 3-6 months. And, depending on your financial situation, to secure a loan for a new construction home, you may need to sell your current home first. For a lot of our customers, that’s a huge stressor. That’s why we’ve created our Guaranteed Sales program just for you. Our partnerships with new construction builders across the country let us bypass the requirement of selling your current home first. Essentially, in very basic terms, we put the offer on your house for you. If we can’t sell it in time when you’re ready to move into your new home, we buy it ourselves. It’s a win-win situation for everyone involved!
Serena Yan worked as a digital content producer at Marketplace Homes in 2021 and contributed many insightful pieces of content to the MPH blog. During her time at Marketplace Homes, she researched the real estate market, analyzed trends to streamline Marketplace Home’s marketing strategy, and found ways to best engage target audiences. Through writing blogs with topics ranging from market trends to home living, she contributed a lot to the early stages of this blog. Thank you, Serena!