Your Home Offer Was Turned Down – Now What?
The worst-case scenario for your home search has become a reality. After months of searching you found the home of your dreams. It is perfect. The layout is right, the neighborhood is exactly what you wanted, and you can imagine your children playing in the backyard. But, the process has come to a screeching halt because the seller rejected your home offer.
Don’t panic, here are your next three steps:
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Avoid Wasting Time
Buyers tend to try to figure out the sellers and what they are thinking. Once their home offer is accepted buyers like to kick it into overtime trying to figure out why the seller turned the offer down without making a counteroffer. Do not fall into this trap.
You can take the time to look at the facts. Work to understand the local real estate market. Double check the comps in the area and what the value of the house is at this time, but don’t try to get into the heads of the seller. It is impossible to determine what they are thinking and you will only drive yourself crazy.
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Bring Your Strongest Home Offer
Many buyers make a home offer that leaves room for negotiations. Everyone wants to get a steal on a house so the tendency is to make a low offer and then negotiate up from there.
This can be a great strategy if you are working with a motivated seller. However, if the seller is not motivated you could have a problem.
Offers that are too low can offend sellers making them not want to make a counteroffer. If your home offer was declined and you aren’t willing to walk away yet, bring your best offer forward.
Look at what other homes are selling for, and determine how high you are willing to go. Once you have determined this make the home offer letting the seller know that is your best offer. If a seller really wants to sell and they aren’t receiving other offers knowing this is the end of the negotiation line with a potential buyer can give them the nudge they need to take the deal.
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Walk Away
If you have made the highest offer you are comfortable making and it is still rejected it is time to walk away. Do not let yourself be talked into offering more than you are comfortable with. It is easy to happen when you feel like your dream house is about to get away, but you will regret the decision down the road. There will be other houses that you fall in love with and will be able to purchase for a price that you can feel good about.
It is 100% natural to feel let down and disappointed when your home offer is declined. Before walking away make sure you have made your best offer. If you have, don’t be afraid to let the house go. Another one will come along faster than you can imagine.