Finding an ideal home can be a daunting process. First, it involves getting pre-approved by your mortgage professional and finding an experienced realtor® who will represent your best interest. Then looking at all of the homes that fit your needs to find the "right home." Sometimes you may find a home that you're in love with. You write an offer that you feel the home is worth to you, only to get an astounding "NO" from the seller. What are your options?
Understand Why Sellers Say No Most of the time, if your offer had a price and terms that were close to being acceptable, the seller will make a counteroffer to you. You then have the right to accept it, reject it or make your counteroffer to their counteroffer. However, sometimes a seller just says no. There is no negotiating.
There are many reasons why a seller says no.
- The offer did not contain the price or terms close to what the seller feels is reasonable.
- The seller was insulted by what they perceived as a low offer.
- Sometimes the way an offer was written or prepared can make the seller cautious about dealing with that buyer. All the more reason why you need to choose an experienced realtor® to represent you. One that knows how to write legally binding and acceptable offers. They also have the experience to negotiate so that both the buyer and the seller feel the price and terms were good.
- Sometimes the seller did not like the buyer or their Realtor's comments about the home. I have often seen an inexperienced realtor® assumed that if they listed all the negative aspects of the home, the seller would lower their price. It's never a good strategy to disrespect a seller's home.
What Are Your OptionsIt's crucial when a seller turns down your offer to speak with your realtor® and explore further options. Re-evaluate how much this home really is worth to you, then you may consider asking your realtor® to write another offer with a higher price or with terms that might be more acceptable to the seller. Or both. It is a good idea for your realtor® to talk to the seller's realtor® and understand why the seller said no rather than make a counteroffer to you. Or maybe the value of the home is worth more to the seller than it is to you. In which case, you will need to move on and look at other homes. After seeing more of the market you may decide to come back to this home and make another offer. Not that we are saying you drop all interest in the home. But if the offer you made was your best and final, then you must consider other possibilities.
Have Reasonable ExpectationsYou may feel that you're writing your best offers but still get your offers rejected. In such cases, you should set more realistic goals. Looking for less expensive homes in other communities helps you to get an overview of pricing strategies.Adjust your expectations to your budget and try to get the best value for your money. If your offers keep on being rejected, have a sit down with your realtor® and try to understand what you're doing wrong.
Moving On Is A Bold StepSometimes homebuyers develop a personal attachment to the property in question while negotiating the deal. Once their offer is rejected, they get emotional. You must forget about the home quickly and move on if you wish to find a new home quickly. The time you would otherwise spend trying to figure out why the seller rejected your offer would be best spent reflecting on the next action step. Always keep in mind the features that made you fall in love with the initial property, and focus on looking for a home with similar aspects. It would be a good time to re-evaluate your wants and needs list with your realtor® and make sure they match the market value you are willing to pay.
Bottom LineIf you're a first-time homebuyer who has gotten your offer rejected, don't give up. Just remember these are common hurdles most people encounter in the home buying process. Instead, it should serve as a wake-up call for you to be more in tune with the market and look for other options that suit you.
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