Two key reasons why your offer might be rejected

We're entering an interesting period in the real estate market as interest rates climb; buyers will start to low-ball offers and sellers will hold on to an asking price they might have achieved 12 months ago.

So most people in the market today will need to buckle in for some initial disappointment and frustration but ultimately be prepared to work together to find compromise and mutual value.

This is where a great agency comes into their own, taking the time and care to explain the situation honestly from the perspectives of the seller and buyer. Neither party has to agree with the other's point of view, but if you want to make a deal, there'll have to be give-and-take.

It's actually the nature of real estate regardless of the economic cycle. Sellers always want top-dollar, and buyers worry they're paying too much.

Interest rates have not moved so high that sellers are worried about whether they'll find a buyer at the right price. 

These are a couple of the main reasons we see for offers being rejected:

Low-balling backfires

It's the main cause for rejection. It also signals that you will be hard work as a buyer. You'll drop down a seller's list of potential buyers and the time they're prepared to spend on you. In a situation of multiple bids, you'll lose every time.

Too many conditions

Sellers become frustrated at “contingencies”. These are events or issues that might crop up and allow a buyer to exit a deal without penalty. Legitimate ones would include major issues raised during a building inspection. The pettier your contingencies, the more likely a seller will look elsewhere for a deal.