How to Reject a House Offer
Getting offers on a house is part and parcel of selling a property. During the process, you’ll likely receive multiple offers before finding the right price and buyer for you. Rejecting an offer made on your property is a normal part of the selling process.
If you’re lucky and have inspired enough competition on the sale of your home, you’ll likely reject several offers in the weeks and months it takes your house to sell. While rejecting an offer is commonplace, it’s important to do it in the right way.
Keep reading to learn how to reject a house offer and the main reasons why sellers reject offers.
How to Reject a House Offer
Whether you’re getting lowballed or have an offer that’s better than the rest, you shouldn’t leave potential buyers hanging. Every offer, regardless of how “bad” it may be, should be responded to in a timely manner wherever possible. Ignoring offers is considered rude, and it’s a surefire way to ensure they don’t come to you with a counteroffer.
When rejecting an offer, you have two choices. You can either outright reject the offer, which is a good choice if the buyer is not right for you (read more about this below). Or you can reject the offer and propose a counteroffer for the buyer to consider.
Here’s what to do when you receive an offer on a house and how to reject a house offer:
- Acknowledge the offer in a timely manner
- Give an indication about when a response to the offer will be given e.g. in one or two days
- Consider the offer carefully – discussing with your real estate agent as needed
- Decide on whether to propose a counteroffer or outright reject
- Respond to the offer – preferably with suitable reasons for rejection
Why Do Sellers Reject Offers?
You own your house until you accept an offer and go through all the paperwork. Therefore, you’re under no obligation to accept any offer that’s made on your property.
Sellers reject offers every day, and it’s a completely normal occurrence. The reasons for rejection can vary. Sellers make the final decision about who they sell to, so there could be so many reasons unique to you for why you want to reject the offer.
That being said, here are some of the most common reasons sellers reject offers.
Lowballing
Provided you’ve done your due diligence, you (and your realtor) will have priced your house according to what other comparable houses in your neighborhood or area are selling for. That price should be something most homeowners in the area consider fair. Anyone bidding significantly lower is lowballing.
Many potential buyers will lowball you right off the bat just to see if you’ll bite. Sometimes, these offers won’t come as a low number, but instead, they’ll ask for a number of concessions.
Concessions are requirements that the seller or buyer must complete before the property closes. These concessions often come as contingencies or conditions that the house must pass home inspections, appraise for the offer price, etc.
When a seller is lowballed, the offer is often rejected. The only reason to accept a lowball offer is if you want to sell a house fast (and have already considered selling to an investor), have code violations on a property, or the home requires major renovation work that is otherwise unaccounted for in the current market price.
Suspicious Funding
Many buyers intend to use loans to fund the purchase of your property. If that’s the case, the buyer will have a pre-approval letter from the lender stating that they’re eligible for such loans. This letter can give you peace of mind about the closing if you accept the offer.
If you have any reason to doubt the funding sources of your buyer, or if the circumstances are risky and complex, don’t hesitate to reject the offer. Speak to your real estate agent for advice if you’re unsure whether the funding source is a cause for concern.
Summary
The housing market is competitive, and as a house seller, you want to get at least a few offers before you accept one and reject all others. The good thing is that you don’t have to explain to anyone why you’ve rejected an offer.
While it’s good etiquette to do so (as then the buyer knows whether to bid higher or move on), you can simply decline. Proposing a counteroffer is always a good idea if you’re happy with the buyer and their funding source, but not the price offered.
If you’re using a listing agent to help you sell your house, you should have a reason for refusing offers, as the agent will be working hard to get your property off the market. That being said, it’s also a good idea to consult with your listing agent and ask for advice.
Are you selling a property in Philadelphia or San Diego? Brotherly Love Real Estate buys houses fast for cash. We can buy your property in as little as 21 days and save you realtor closing fees. Contact us today to learn more or give our team a call at (215) 769-9875.
Our team specializes in giving homeowners options. If you have thought that I need to sell my house fast for cash, reach out to us for information and best practices.