Blocks & Lots

Rejected offer: what to do next

Rejection in real estate, unlike many other professions, usually comes down to one thing, money. If your offer for a home was rejected the owner wanted a higher price. Of course, there are exceptions but money tends to rule the roost. When rejection strikes, here are your options:

Resubmit a higher offer

The first thing you should do is ask your agent why your offer was rejected if they haven’t already found out. The seller might shoot back a counter offer which will give you an idea if this is negotiation is one you wish to engage in. If you really want the house then resubmitting a higher offer is the only way you’re going to get it. 

Take away contingencies

If your agent tells you that there is another offer on the table that is slightly higher than yours, if you can afford to purchase the house all cash (it might mean borrowing money from a non-financial institution — ie a relative or a 401K), then take away your mortgage contingency and most of the inspection contingencies (it’s always a good idea to maintain a sewer inspection in an older home in case the line is rotted to the main city sewer which can cost thousands of dollars). If you add a fast closing on to the offer, too, you must just snag the deal.

Decide to move on

If the above two options are not available then it may be time to expand your search, re-evaluate how much money you’ll be able to spend and just keep looking. Buying a house is not usually a short term process and can take months so roll up your sleeves and move on.