When an estate agent calls to give you the news that your offer has been rejected, you might be tempted to make a rash decision. We get it; this is your dream house and you can't bear the thought of more house hunting – but you should never make a second offer without giving it serious thought first.
Having your first offer turned down gives you the knowledge that your bid wasn't too high – take this as good news, because you never want to bid over the odds. Now you know what the seller won't accept, you need to figure out what they will accept and decide whether or not it's worth making that offer.
Keep reading to find out how to make a second offer on a house.
How to Tell if You Should Make a Second Offer
The first question you need to ask yourself is this: are you willing to walk away from this property and search for a different house? If the answer is no, then you should seriously consider making a second offer.
Before you made your initial offer, you should have done some research about the house's true market value. Remember, estate agents typically inflate property value in a bid to win over the seller, so the asking price might not be realistic. Consider your findings now; how much is the property really worth? If your rejected bid was below the value, you still have some room to make an increased offer without bidding more than what the property is worth.
You should also consider how long the property has been on the market and whether or not the seller has received other offers. If the house has been recently listed and there are already lots of competing buyers, consider making a second offer to minimise your risk of losing out. Remember, never bid more than what the house is worth unless you are set on this particular property and can afford to do so.
When Making a Second Offer Is Not a Good Idea
Once again, think back to your research about the property's value. If you need some help, read our dedicated article: 'Tips to value your house yourself'. If making another offer means you're bidding more than the property is really worth, reconsider. You don't want to make an unwise investment.
Next, consider how long the property has been on the market and what other offers the seller has received, if any. A house that has been advertised for a long time without any interest is unlikely to sell any time soon. The seller might be holding out in the hope of making more money, but the chances are that no other buyer will outbid you. This is where time is on your side; if you're willing to take the risk, tell the agent that you won't be making a second offer, but you are happy for the seller to reconsider.
If the idea of losing out on this property doesn't fill you with disappointment, consider looking elsewhere. Remember to listen to your feelings and gut instinct. If you left the offer open before walking away, you never know – you might get a phone call in a few weeks or months letting you know that the seller has reconsidered and that the house is yours!
How Long to Wait Before Making a Second Offer
Whatever you decide to do, never make a second offer immediately after hearing your first was rejected. You might feel as though each second that passes is an opportunity for a different buyer to come in and outbid you, but you don't want to make a rash decision that you could later regret.
We recommend thanking the agent, explaining that you'll need time to consider your next move, and telling them that you'll be in touch shortly. Take at least a day to work out whether or not you want to make a second offer and how much it will be.
If you decide not to make a second offer or you place a fresh bid that's only worth a fraction more than the last, you could decide to leave lines of communication open and walk away. This approach is a risk and requires a bit of nerve, but if the odds are weighed in your favour – for example, you have bid a fair amount, there is no competition and you are an attractive buyer – this could prompt the seller to reconsider.
How Strong Are You as a Buyer?
When considering how to make a second offer on a house, one important factor is how strong you are as a buyer. If you are a strong buyer, you will be more attractive to the owner of the house you intend to buy and there may be less need to place a second, higher bid.
You are a strong buyer, if:
You are a first-time or cash buyer with no property chain
You have a mortgage agreed in principle
You have sold your property already and you are renting a home temporarily
Do you want to strengthen your negotiating position as a buyer? Do you want to increase the likelihood of having your offer accepted? By selling to a fast property buyer like Zoom, not only could you save money on your house sale, but you could also become a much more attractive buyer.
To find out how our expert team could help you sell your house fast, call 0333 880 436 or complete our online enquiry form.