For those of you who have ever tried to by a home, there’s a chance that you may have experienced your offer being rejected. It can be a tough thing to accept because you become excited about the property. When your offer is declined, you can’t help but feel discouraged, so if you want to prevent your offer from being refused, here are some tips to use to make sure you have as good of a chance as possible to have your offer accepted.
One main reason why your offer was probably refused is because it was too low. When someone is selling a home, they want to get as much money as they can for their property. If you approach them with an offer that’s much less than the amount that the sellers are looking for, then they’re going to move to an offer that’s closer to their selling price. When your offer is rejected because it’s too low, you can always negotiate. Once your agent knows the maximum budget that you are willing to spend, your agent will immediately begin negotiations with hopes to prevent any tension from rising between the two parties.
It will also help you tremendously if you know about the current real estate market because this will help influence the offer that you present to the seller.
“One of the biggest reasons why offers are not accepted by the seller is because of an undesirable initial offer,” said Frank DiCocco, a broker associate for Better Homes and Gardens Rand Realty’s office in Wyckoff, New Jersey. “As realtors, we are also educators. It is our due diligence to ensure the buyers are well aware of fair market value. CMAs (comparative market analysis) are not only for sellers. Agents should not be afraid to run a CMA for a buyer prior to putting in an offer. There is a big difference between a ‘workable’ first offer and an insult. I have also provided my comp documentation when presenting an offer to the seller in the past. It works! Agents should educate their buyers. Super low offers don’t always work out like they do on TV.”
Other than not coming close to the price that the seller has established, there might have been other demands that you didn’t successfully meet. As you and your agent begin to interact with the seller and seller’s agent, you must know as soon as possible what exactly they want from you, just so you’re not bombarded by these demands later on. Additional requirements from the seller might include anything from a lender’s pre-approval letter, to an earnest money deposit, to the seller’s need to sell the home quickly. If the latter is the case, you should think about whether you are able to close on the home right away, or if you need some extra time beforehand; some reasons for waiting might be that you need time to come up with a down payment or need time sell your previous home. If the seller wants to sell their home as soon as possible, they might not want to wait for you to find the right time to move in.
When preparing to buy a home, you can’t let the prospect of rejection deter you from doing your best to get the house you want. If your offer is declined, it can be frustrating, but you can’t linger on that disappointment; you just have to keep in mind what went wrong and learn how to avoid those mistakes the next time you set up an offer. Always remain optimistic when searching for a home because if you see another potential home that you wish to buy, you might be able to give the seller an offer they can’t refuse.