It’s not uncommon for real estate negotiations to involve some back and forth between buyers and sellers. After receiving an offer, the seller may choose to reject it for a variety of reasons – the price may be too low, the closing date unacceptable, or they may simply hope for a better offer. This leads many buyers to wonder: if I make an offer that gets rejected, can I come back later with a better deal?
The short answer is yes, it is generally possible for a buyer to return to the negotiating table after having an initial offer rejected by the seller. However, there are a few key factors to consider if you find yourself in this situation.
Why Was the Offer Rejected?
First, try to understand clearly why your offer was rejected. Was it a problem with the price, closing date, contingencies, or other terms you proposed? If you can get insight into the seller’s objections, it will allow you to tailor a new offer that better meets their needs.
For example, if the seller felt the offer price was too low, you may have more success coming back with a higher dollar amount or improvements to your financing terms. If they wanted a faster closing date, emphasize how you can make that work in your new proposal.
Getting clarity on why your original offer fell short is key to crafting an improved deal. Don’t take a rejection personally – look at it as an opportunity to understand the seller’s priorities and fine-tune your offer accordingly.
Strengthen Your Offer
As mentioned above, your goal with a revised offer should be to directly address the weaknesses or issues that caused the seller to reject you initially. Some ways to potentially strengthen a rejected offer include:
– Increasing the purchase price
– Easing contingencies like the home inspection or appraisal
– Shortening contingencies or the closing timeline
– Putting down a larger earnest money deposit
– Pre-qualifying for a mortgage or getting pre-approved
– Agreeing to take the home “as-is” if repairs were an issue
– Waiving the financing contingency
– Covering any gaps between appraisal and purchase price
Any combination of these adjustments shows you have taken the seller’s concerns to heart and are willing to improve the terms in their favor in order to get the deal done. Make your new offer clear and compelling.
Act Quickly
Timing is important if you want a second chance to put your offer forward. The sooner you follow up after the rejection, the more likely you are to still be in contention.
Don’t let days or weeks go by before approaching the seller again. They may take another offer in the meantime or become less willing to negotiate with you. Speed and persistence can work in your favor.
Let the seller know you are still very interested in purchasing the property. Ask if they would reconsider your terms or provide guidance on what it would take to reach an agreement. Don’t hesitate to put a deadline on your revised offer to encourage prompt consideration.
Be Prepared to Walk Away
What happens if you float an improved offer but the seller still says no? At that point, you need to be willing to walk away rather than getting caught in a cycle of rejection.
As eager as you may be to purchase this particular property, there is a line where continuing to bid against yourself no longer makes sense. If the seller won’t move off their price or terms after reasonable back and forth, you may need to move on and refocus your home search elsewhere.
Know when to shake hands and go your separate ways. You can certainly leave the door open, but also be ready to find another home that better aligns with your priorities.
Can You Make Another Offer After a Home Goes Under Contract?
A special case is when a home you want goes under contract before you get a chance to make an offer. Can a backup offer sometimes still work?
Again, the timing here is key. If the sellers have only just accepted an offer, you may be able to put your name in as a backup buyer in case their deal happens to fall through. This isn’t guaranteed, but it can be worth a shot.
Make sure your agent asks the listing agent if backup offers are being considered. If the answer is yes, submitting one promptly gives you a chance down the road. But if the sellers refuse to look at backups, you will need to turn your attention to other available properties.
When Are Multiple Offers Appropriate?
Now we’ve explored making a second attempt at an offer after rejection. What about making multiple offers within a short time on the same home?
This is usually not recommended. Unless the seller has specifically asked you to modify and re-submit your offer, multiple submissions may work against you:
– It can signal desperation or refusal to take “no” for an answer
– The seller may interpret it as unfair pressure tactics
– It risks souring the relationship and ongoing negotiations
Making one strong offer and waiting for a clear response is best. Only if the seller engages you on ways to improve your offer should you consider a follow-up submission. Otherwise, avoid bombarding them with multiple overtures.
Can Rejecting an Offer Impact Your Negotiating Power?
Does having an offer rejected weaken your position as a buyer? Or can rejecting an offer sometimes increase your leverage?
Generally, rejection alone doesn’t have to hurt you. As long as you respond strategically, a “no” to your first offer still leaves room to negotiate. Focus on listening to the seller’s concerns and crafting a better contract.
In fact, walking away from an offer you perceive as too high or unreasonable can support more favorable terms later. Just because an offer was rejected doesn’t remove your ability to negotiate if you approach discussions proactively. Don’t let initial rejection automatically put you at a disadvantage.
Should You Offer Above Asking After a Rejection?
What if your first offer at or slightly above asking price was rejected? Should you now go significantly over list price to appease the seller?
Not necessarily. Offering far above asking after a lowball rejection can look desperate. Make a reasonable improvement but don’t bid against yourself unnecessarily.
For example, if they rejected your offer of $275k on a $270k list price, consider meeting in the middle at $275k. But immediately jumping to $290k could work against you, unless you have clear data that this matches market value.
Bumping your rejected offer by thousands could also price you out of the deal. Improving terms and price is fine, but know your upper limit before overextending on a subsequent offer.
At What Point Should You Walk Away After Rejection?
Assuming you want to take another shot after rejection, at what stage does it make sense to walk away? Here are a few signs it may be time to pursue other properties:
– The seller won’t provide any feedback on your offer terms
– Their desired price far exceeds your budget or appraisal likelihood
– They refuse to negotiate or counter on multiple offers
– They flip flop on what terms they want
– Your inspection uncovers expensive issues they won’t address
If reasonable back and forth isn’t leading towards a mutual agreement, reroute your efforts towards more willing sellers. You can always circle back if they reengage with better terms.
Ultimately you need to know when you’re throwing good money after bad on a deal that just isn’t meant to be. Don’t get so caught up that you lose perspective.
Should You Improve a Rejected Offer?
We’ve covered many scenarios where improving a rejected offer can make sense if you want the home. But are there cases where standing firm rather than upping a rejected offer is the smarter move?
A few situations where rejecting a counteroffer and holding your line may be strategically wise:
– The home has been on the market for a lengthy period already
– There is little competition from other buyers
– Your research shows your original offer was at fair market value
– The house has flaws you uncovered making repairs unlikely
– You have other good options still available to pursue
– The seller shows unwillingness to negotiate reasonably
If circumstances like these give you leverage, declining a counter and re-submitting your original terms may work. The seller could come around once they see you won’t overpay.
That said, in a hot market with competing buyers, the better tactic is usually to renegotiate in good faith until a reasonable compromise is reached. Just don’t bid blindly; improve your position strategically.
Conclusion
While no buyer wants to hear the word “rejected” during real estate negotiations, it doesn’t have to derail your homebuying hopes. More often than not, a buyer can bounce back after an initial rejection and still reach a deal.
The keys are to understand the seller’s objections, strengthen your next offer, and act quickly but judiciously. With strategic follow-up, many initially rejected offers do ultimately lead to successful transactions.
Don’t take rejection personally or let it sap your confidence. Remain engaged with the seller around ways to bridge your positions, but also know when to walk away if clear agreement can’t be reached. If one home doesn’t work out, others will. With the right approach, rejection can just be a step along the path to homeownership.