87 MILL STREET, Mansfield, MA 02048
Shopping for a home is a long, arduous process. When you finally find one that you love, think you can afford, and spend the time to formulate an offer, it can be crushing when your offer is rejected.
However, getting rejected is simply part of the process. If you’ve ever applied to college, you might be familiar with this process. You send out applications that you poured your heart and soul into. Sometimes to get accepted, other times you don’t.
Making an offer on a home comes with one big advantage over those college applications, however--the opportunity to negotiate. As long as the house is still on the market after your offer is rejected, you’re still in the game.
In this article, we’re going to talk you through what to do when your offer is rejected so you can reformulate your plan and make the best decision as to moving forward.
1. Don’t sweat it
One of the most common fallacies we fall into as humans is to think the outcome is worse than it really is. First, remember that there are most likely other houses out there that are as good if not better than the one you are bidding on, even if they’re not for sale at this moment.
Next, consider the rejection as simply part of the negotiation process. Most people are turned off by rejection. However, you can learn a lot when a seller says no. In many cases, you can take what you learned and return to the drawing board to come up with a better offer.
Don’t spend too much time scrutinizing the seller’s decision. Ninety-nine percent of the time their decision isn’t personal. You simply haven’t met the pricing or contractual requirements that they and their agent have decided on.
2. Reconsider your offer
Now it’s time to start thinking about a second offer. If the seller didn’t respond with a counteroffer it can mean one of two things. First, they might be considering other buyers who have gotten closer to their requirements. Alternatively, your offer may have been too low or have had too many contingencies for them to consider.
Regardless, a flat-out rejection usually means changes need to be made before following up.
3. Making a new offer
This is your chance to take what you learned and apply it to your new offer. Make sure you meet the following prerequisites before sending out your next offer:
Double check your financing. Understand your spending limits, both on paper and in terms of what you’re comfortable spending.
Check comparable houses. If houses in the neighborhood are selling for more than they were when the house was previously listed, the seller might be compensating for that change.
Make sure you’re pre-approved. Your offer will be taken more seriously if you have the bank’s approval.
Remove unnecessary contingencies. It’s a seller’s market. Having a complicated contract will make sellers less likely to consider your offer.
4. Move on with confidence
Sometimes you just can’t make it up to the seller’s price point. Other times the seller just can’t come to terms with a reasonable price for their home. Regardless, don’t waste too much time negotiating and renegotiating. Take what you learned from this experience and use it toward the next house negotiation--it will be here sooner than you think!
Although you might have a home selling timeline in place, there may be instances where changes to your plan are required. These include:
1. You are listing your home in a buyer's market.
If you add your house to a buyer's market, you likely will face lots of competition from rival home sellers. As such, it may be difficult to enjoy a fast, profitable home selling experience if you fail to promote your residence accordingly.
To succeed in a buyer's market, you'll need to be patient. But if you can find ways to differentiate your house from the competition, you could maximize your home sale earnings.
Oftentimes, it helps to revamp a house's curb appeal. By mowing the front lawn and performing various home exterior improvements, you can help your house make a positive first impression on potential buyers.
You also should spend some time removing clutter from inside your house. That way, you can make it easy for buyers to envision what life may be like if they purchase your home.
2. You are struggling to stir up interest in your house.
After you add your house to the real estate market, it may be several weeks or months before a buyer submits an offer to purchase your residence. And if you're committed to optimizing the value of your house, it is important to wait for the right offer before you finalize your house sale.
If your home initially fails to stir up interest among buyers, there is no need to worry. In fact, there are many things that you can do to ensure your house hits the mark with buyers.
Generally, it is a good idea to establish an aggressive initial home asking price. This price should account for your house's condition, age and the current state of the real estate market.
It typically is beneficial to consider the homebuyer's perspective as well. Because if you understand why a buyer may be interested in your house, you could discover ways to help you house stand out in a competitive real estate market.
3. You have yet to hire a real estate agent.
Finding a real estate agent who can help you sell your house is key. Yet if you fail to employ an expert real estate agent right away, it may be difficult to enjoy a quick, seamless home selling experience.
Real estate agents are available in cities and towns nationwide, and these housing market professionals are happy to assist you in any way possible. If you need a real estate agent who can help you list your house and promote it to dozens of potential buyers, you should have no trouble finding an agent who matches or surpasses your expectations. Or, if you want to find a real estate agent who can offer tips throughout the home selling journey, you can choose from many potential candidates in your area.
Remember, be flexible as you proceed along the home selling journey, and you can increase the likelihood of achieving the best-possible results.
10 Sharon Ave, Norfolk, MA 02056
If a seller is motivated and your offer is the only one that comes in on a home for sale, you may have an easy time getting the home of your dreams. If there are multiple offers on a property, it’s a different story.
If there’s competition, it’s simple math that your odds in favor of you getting the home are reduced. You need something that will grab the seller’s attention. Writing an offer letter can be just what you need to sway the decision in your direction. Even if your offer is less than what other people have put on the table, an offer letter is a perfect way to get the attention of the seller.
What To Include
You may wonder what you should include in an offer letter. You’re charming the sellers in a way, but also giving them an opportunity to get to know you. If someone has lived in a home that they have loved for a long time, they’ll be happier knowing the next occupants will be just as happy living on the property.
What Do You Like About The Property?
You should include a lot of positive things involving the property and your ability to care for and maintain it. Tell the seller about the features you most love about the house. You should let the seller know that they hard work they have done over the years has paid off and you appreciate it. Do you like the skylights? Does a remodeled kitchen get your attention? Is the deck a great feature for you to entertain on? Let the seller know any and everything that enticed you to put an offer on the property in the first place.
Share Some Of Your Life
You don’t have to get overly personal or mushy, but you should include a bit about yourself and why you chose this property among the many you have seen. Maybe you grew up in the neighborhood. Maybe the home is perfect for your expanding family. Whatever the reason is for you to want this particular house you need to let the seller know.
In addition to personal details, you can include a pre-qualification letter, demonstrating your ability to afford the home. This helps sellers to feel comfortable with your financial background and continued upkeep of the property.
What Not To Include
While your plans for a property may be grandiose in your mind, don’t tell a seller what you plan to do with the proeprty in your offer letter. It’s nice that you want to update the kitchen, or re-do the bathrooms. It’s an insult of sorts to the seller so just omit these items. Keep your offer letter positive and brief and you may be well on your way to securing the property of your dreams.