Do You Really Want THAT Offer?!
After spending years in your home making improvements and creating memories, you’ll want to sell it to someone who will cherish it as much as you have. You may even receive multiple offers from people looking to turn your house into their home. However, not every offer on your home will be right. There are several reasons why an offer isn’t right, and it is important to know how to turn down an offer politely and properly. Let’s take a look at some ways an offer might not be right for you.
It can be awkward turning down an offer because it can be difficult for a buyer to hear, but you are not under any obligation to accept an offer. Here are some of the common reasons why an offer might not be a good fit for your plans:
Low offer
Sometimes buyers will throw out an offer below the asking price hoping you’ll accept it. If the amount is too low for you to consider or if your home has just entered the market, you may wish to reject the offer. Or you could make a counteroffer (I’ll explain more about that later).
Earnest money and/or Due Diligence Fee is too low
Earnest money and due diligence fees are offered by buyers upfront as a deposit. This is a sign a buyer is serious, and the amount can be a flat rate or a percentage of the asking price. If your home is in a competitive market, you may decide to turn down an earnest money offer that is too low or nonexistent.
Too many contingencies
Contingencies are conditions that must be met for the sale of a home to be completed. Common contingencies may include completing a home inspection, allowing the buyer’s home to sell first, and a review of any HOA documentation. However, if a buyer has numerous contingencies and it feels excessive, you can pass on the offer.
No pre-approval letter
A pre-approval letter from a lender provides a buyer with documentation that they are eligible for the loan amount needed for a home, and it shows they are serious about buying your home. If a buyer does not have this letter, it may cause you to doubt their ability to receive the funding needed to purchase your home.
Can’t agree on a closing date
It can be tough for two individual parties to come together and agree on a closing date. While it is typically around 30-45 days, everyone’s needs are different. If a buyer’s timeline doesn’t match up with your needs, you can decide not to accept their offer.
Receiving a better offer
Finally, if your home is in a competitive market, it can be a good idea to wait for several offers to be submitted. This allows you to accept the most lucrative offer while passing on the rest.
After reviewing an offer, if you find the terms aren’t what you were expecting, you can either reject their offer or make a counteroffer. Having an offer rejected and having to start all over again is hard on buyers and their agents. Even if you don’t accept someone’s offer, you should make every attempt to respond, as it can be seen as rude to not respond. It is important to remember these individuals could eventually buy your home by making a new offer or if you’re struggling to receive other offers.
If the offer is just a little off from what you were hoping to get for your home, you can work with your agent to prepare a counteroffer. To cut to the chase, respond with what you consider to be your best offer.
If you feel you don’t want to move on with this buyer for any of the previously discussed reasons and don’t feel the need to counteroffer, you can decline their offer. Simply ask your agent to respond with your rejection. They will connect with the homebuyers’ agent and politely and professionally turn down their offer.
Having an offer not accepted by a seller is tough on homebuyers. However, conducting communications with proper etiquette, it can be a less stressful situation for everyone involved. If you would like more information regarding selling your home, call us at The Old Mill Group. We are to help.
Reasons For Not Accepting A House Offer
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