It’s a scenario you never want to think about, but it happens all of the time, so you should prepare yourself. Sellers often reject purchase offers that they receive. Does this mean it’s the end of the road for you? Do you have to find another home?
The answer truly depends on your situation. In some cases, it may make sense to just walk away from the home. In others, though, you may have some choices. Keep reading to find out what choices you may have.
Come Back With a Higher Offer
The most logical step would be to offer a higher purchase price. If the seller feels insulated at your low bid or thinks he/she can get more for the home, your offer may be rejected. It doesn’t mean you can’t come back with a higher offer. Some sellers might not accept another offer from you, especially if they are insulted, but don’t let that get to you. In that case, it wasn’t meant to be. It’s time to move onto another home.
If the seller is willing to accept another offer, though, figure out the maximum amount you are willing to spend. Let the seller know this is your maximum bid. If they decline that offer too, it’s time to move onto another home.
Find Out the Estimated Value of the Home
If you think the seller is way out of line regarding how much he/she is asking for the home, secure proof. Talk to a professional appraiser to get a ballpark estimate for the home. You can use this information as ammo when you go back to the seller. If your bid was within the ballpark of the estimated value, the seller may be willing to accept your offer or counter it slightly, rather than rejecting it.
If the seller sticks to his guns though, and demands the higher price, it’s time to move onto another home. There’s no sense in paying more than a home is worth. First it would be hard to get financing. Second, you would enter the purchase of your new home upside down. It takes a long time to get yourself out of that position. No one wants to start homeownership with negative equity!
Get a Mortgage Pre-Approval
Many times sellers reject offers from buyers that don’t have a pre-approval for financing. That pre-approval letter is worth its weight in gold. The seller needs to know that you have a good chance of securing financing. Without that pre-approval, the seller doesn’t know if you are a serious buyer or if you can secure funding for the home. If you come up empty handed, the seller ends up back at square one. He will have to list his home and try to sell it all over again.
If a seller rejected your offer because you don’t have a pre-approval, contact a few banks and get that pre-approval. Once you have proof that you can afford the loan and you can get financing, the seller may be more willing to accept your offer the second time around.
Walk Away From the Home
You have the right to just walk away from the home as well. Most of the above options also include the need to just walk away when things just aren’t right. If the home wasn’t meant to be yours, it’s time to move onto another home. Even if you thought this was your ‘dream’ home, there are other options available. It may take you some time and you may have to jump through a few hoops, but you’ll get there eventually.
Buying a home is a big decision. If your offer was rejected, there is a reason. Find out that reason and then decide if it’s worth fighting or if you should just find another home. Remember, this is one of the largest investments you’ll make in your lifetime. Enter the transaction with caution and patience and the right home will come along.