There’s likely nothing worse when you’re trying to buy a home and your offer is rejected. You’ve searched through what seems to be hundreds of homes, you found the perfect home, you present an offer to buy it, and your offer is rejected.
Nobody likes rejection. Now what, you ask? Great question. Although dreaded, it doesn’t have to be the end of your dream in owning this home. What are the best ways to handle such a rejection?
First of all don’t fret
If you get all stressed out, you’ll cloud any clear thinking that may offer solutions to actually buying the home you love where the Seller comes around to accepting your offer. Take a deep breath and relax, after you’ve received the dreaded rejection call from your Real Estate Agent. It’s negotiation time.
Re-examine your offer
What particularly did the Seller reject? Did she reject your price or your specific contract terms? It’s much easier to come back with a more appealing offer if you know what the Seller didn’t like about your offer.
However, there are times when a Seller will not tell you and will simply reject it outright without going into detail. However, when this type of rejection occurs it is more than likely due to a particularly low offer as compared to the Seller’s asking price.
Consider the price you offered and if it was below market value, you’d better think twice about whether or not now is the time that you really want to get the deal of a lifetime. Your ability to obtain a deal will often depend on what your local market defines.
For example, if you’re a Buyer in a Seller’s Market, low ball deals will be hard to come by when you’re competing against other Buyers clamoring to buy a home when the inventory of homes is low. Your price will have to be on the money or above if you really desire the home.
What about the terms of your offer? Considering increasing your escrow deposit, shortening your inspection period, shortening your loan financing commitment and by all means don’t ask for a longer than normal closing date. Were you asking for help with closing costs? Do you really need help or did you think you’d try to get some money from the Seller to help with your closing costs so you don’t have to bring so much money to closing?
If you really don’t need the money, forget about asking for a Seller’s closing cost contribution or at least reduce the amount that you were asking to receive at closing.
It’s not the time to lollygag. If you want any chance of saving your purchase, communicate with your Agent and make sure they’re in touch with the Seller’s Agent promptly to let them know you’re considering your options. Just don’t sit back and say you’ll get to it in a few days or so. That’s a sure-fire way to close the door in your face unless of course that is your desire.
Make sure you’ve hired a Real Estate Agent proficient in Real Estate negotiations
This isn’t something that you want to determine after you’ve already hired a Real Estate Agent. You don’t want to be in need of valuable negotiating advice when your offer is rejected and only come to find out that your Agent is anything but proficient in negotiations.
This should have been something you determined before you hired an Agent to represent you in the buying of a home. Make sure you asked all the right questions and make sure you know the facts about buying a home. Make sure you did a thorough online search of the Agent you were considering to hire so you can feel confident in knowing they’re skilled at Real Estate negotiations.
Painful as this choice may be, understand it is not the only home for you. And sometimes it turns out to be a blessing in disguise. Perhaps it’s your instincts that you need to trust and what they’re telling you. Start your home search again. There will be other homes.
In hindsight, do you think your initial offer could have been made more attractive to the Seller? Quite often, I find that Buyers will learn very valuable lessons after making a first offer on the home and it doesn’t go through. Unfortunately, we learn our greatest life lessons often the hard way. As long as you learned from your experience is all that matters. So yes, move on.
Know that a rejected offer does not have to be the end of the road as long as you remain level headed, re-evaluate your offer, don’t sit on what you’ll do, and have a skilled Real Estate Agent guiding you, you’ll likely get a second chance. However, remember too that now might be just the time for you to move on to find another home to buy.