Your Dream Home Offer Was Rejected – Here’s Why and What to Do Next

Posted by admin on July 8, 2025

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Your Dream Home Offer Was Rejected – Here’s Why and What to Do Next

You finally found your dream home after weeks or months of searching. You put an offer in and you’re already picturing yourself eating dinner in the dining room and hanging out by the pool. Suddenly, a notification from the seller dashes all your dreams: Your offer was rejected. What? How? Why? This is the perfect home for you and your family; how could the seller not see that? Not to mention you took the time to craft a perfect offer letter in the first place.

The truth is, the most variable factor in the home buying and selling process are the humans doing the buying and selling – the unexpected can always happen. Let’s take a closer look at the reasons why purchase offers are rejected, and what your options are from there.

Why Was My House Offer Rejected?

1. Your Offer Was Too Low

Everyone wants to save a bit of money when buying a home, which is understandable; purchasing a home is a huge investment! That being said, trying to keep a little change in your pocket could actually end up costing you. While you might view your offer letter as a strategic way to get the home of your dreams at a reduced cost, the seller could see your lowball offer as devaluing their home. They’ve invested time and money into building this home, and likely, they want it to go to someone who will appreciate that effort.

2. Your Offer Was Too High

An incredibly high offer sends off little red flags in the seller’s mind. Why? Because any lender is going to require an appraisal, and if they find the value less than what you’ve offered to pay, they’re going to put a pause on your approval for financing. Want to offer well above listing price and ensure it’s accepted? It’s significantly more likely to happen if your offer is all in cash.

3. You Had Too Many Contingencies

These what-if clauses within the purchase agreement are intended to safeguard you, the buyer, from any unsavory information that comes up along the way, but they also communicate hesitancy to the seller. Make sure each contingency present is absolutely necessary before sending your purchase offer.

4. You Didn’t Meet Requirements You Didn’t Know Existed

Some builders might have a certain buyer in mind when they put a house on the market. That might include specific mortgage lenders they favor, a certain earnest deposit amount they want to see, or a closing date they’re looking for based on their timeline and pressures. This is typically where having an agent comes in handy, as they can reach out to the seller’s agent to get a feel for any of these parameters.

5. There’s a Competing Offer

If you and another buyer placed an offer at the exact same time, the seller is going to look at risk factors and consider which offer they like better. For instance, you might offer a higher earnest deposit, but the other buyer is offering to close on a quicker timeline. Whichever is more important to the seller is the offer that’s going to be accepted.

6. It’s Not Them, It’s You

If you and the seller don’t see eye to eye and personalities clash, they’re likely not going to be rooting for you. Keep in mind agents also affect this. These minor differences in character can cause rifts down the line.

What Can I Do When My Offer Letter Is Rejected?

Essentially it comes down to two paths: You can make a new offer and continue to pursue this home, or shift your search elsewhere.

Making a New Offer

Can I increase my offer?
Are all the listed contingencies absolutely necessary?
Can my closing date be adjusted to meet their timeline?
Can I increase my earnest deposit or down payment amount?
Is there any information I didn’t include in my original offer that would make a difference?

Think about adding a personal letter to reiterate why you’re the perfect person to buy this home. While none of these tips are guaranteed to change the seller’s mind, they can help.