Stephanie Kane's Blog
Shopping for a home is a long, arduous process. When you finally find one that you love, think you can afford, and spend the time to formulate an offer, it can be crushing when your offer is rejected.
However, getting rejected is simply part of the process. If you’ve ever applied to college, you might be familiar with this process. You send out applications that you poured your heart and soul into. Sometimes to get accepted, other times you don’t.
Making an offer on a home comes with one big advantage over those college applications, however--the opportunity to negotiate. As long as the house is still on the market after your offer is rejected, you’re still in the game.
In this article, we’re going to talk you through what to do when your offer is rejected so you can reformulate your plan and make the best decision as to moving forward.
1. Don’t sweat it
One of the most common fallacies we fall into as humans is to think the outcome is worse than it really is. First, remember that there are most likely other houses out there that are as good if not better than the one you are bidding on, even if they’re not for sale at this moment.
Next, consider the rejection as simply part of the negotiation process. Most people are turned off by rejection. However, you can learn a lot when a seller says no. In many cases, you can take what you learned and return to the drawing board to come up with a better offer.
Don’t spend too much time scrutinizing the seller’s decision. Ninety-nine percent of the time their decision isn’t personal. You simply haven’t met the pricing or contractual requirements that they and their agent have decided on.
2. Reconsider your offer
Now it’s time to start thinking about a second offer. If the seller didn’t respond with a counteroffer it can mean one of two things. First, they might be considering other buyers who have gotten closer to their requirements. Alternatively, your offer may have been too low or have had too many contingencies for them to consider.
Regardless, a flat-out rejection usually means changes need to be made before following up.
3. Making a new offer
This is your chance to take what you learned and apply it to your new offer. Make sure you meet the following prerequisites before sending out your next offer:
Double check your financing. Understand your spending limits, both on paper and in terms of what you’re comfortable spending.
Check comparable houses. If houses in the neighborhood are selling for more than they were when the house was previously listed, the seller might be compensating for that change.
Make sure you’re pre-approved. Your offer will be taken more seriously if you have the bank’s approval.
Remove unnecessary contingencies. It’s a seller’s market. Having a complicated contract will make sellers less likely to consider your offer.
4. Move on with confidence
Sometimes you just can’t make it up to the seller’s price point. Other times the seller just can’t come to terms with a reasonable price for their home. Regardless, don’t waste too much time negotiating and renegotiating. Take what you learned from this experience and use it toward the next house negotiation--it will be here sooner than you think!
Buying a home should be a problem-free experience. Yet issues may arise that make it tough to acquire the perfect house at an affordable price.
Common problems that come up during the homebuying journey include:
1. Lack of Home Financing
Before you search for a home, it generally is a good idea to get pre-approved for a mortgage. That way, you can kick off a house search with a budget in hand.
To get pre-approved for a mortgage, you should meet with banks and credit unions. These financial institutions can teach you about a variety of mortgage options and help you get approved for home financing in no time at all.
Of course, if you have questions as you pursue a mortgage, don't hesitate to ask a lender for assistance. Lenders employ courteous, knowledgeable mortgage specialists who are happy to respond to your queries without delay.
2. Temptation to Submit a Lowball Offer to Purchase
Once you find your ideal residence, you may be tempted to submit an offer to purchase at or below a house seller's initial asking price. But doing so may be problematic, particularly for a homebuyer who wants to acquire his or her dream residence as quickly as possible.
If you submit a lowball offer to purchase a house, a seller likely will reject the proposal. Worst of all, a rival homebuyer may swoop in with a competitive offer to purchase this residence – something that may cause you to miss out on the opportunity to buy your ideal home.
Ultimately, it is beneficial to submit a competitive homebuying proposal. If you allocate time and resources to learn about a home's condition and how a residence stacks up against comparable houses in the same city or town, you can craft a competitive offer to purchase. And as a result, a competitive offer to purchase may receive an instant "Yes" from a home seller, leading to a fast, successful homebuying experience.
3. Failure to Identify Problems During a Home Inspection
A home inspection is paramount because it gives you the opportunity to walk through a residence with a property expert and learn about any underlying house issues. Then, if you discover major problems with a house, you can ask a seller to complete property repairs, reduce your initial offer to purchase or walk away from a residence altogether.
Hire a home inspector who possesses comprehensive expertise – you'll be glad you did. With the right house inspector at your side, you can get the help you need to identify problems during a property inspection.
Lastly, as you get ready to search for a house, you may want to hire a real estate agent as well. This housing market professional can provide extensive guidance throughout the property buying journey and ensure you can mitigate homebuying problems before they escalate.
Reach out to a real estate agent today, and you can receive plenty of support as you navigate the homebuying journey.
Houseplants are the ideal choice for functional decorations. The presence of plants in your spaces may brighten up your home, de-stress it, and purify the air. Houseplants can create a relaxed and restful ambiance. Below are some of the best houseplants to purify the air in your home and de-stress.
1. The Aloe Plant
This plant is just as beautiful as it is functional. It has healing properties and is appropriate for use on cuts, burns, and irritated skin. It gets rid of air pollutants and improves allergens that may spread respiratory diseases.
When the concentration of chemicals in the air gets too high, the leaves may develop brownish spots. The aloe plant is one of the best options for monitoring air quality. People have been using it for over 6,000 years and it is popularly known as ‘the plant of immortality.
2. Spider Plant
This plant does not require lots of care. It is an excellent option if you tend to forget about your houseplants. It has rich foliage and small white flowers. It grows fast and is safe for pets.
According to NASA tests, the plant can remove up to 90% of cancer-causing chemicals from the air. It gets rid of formaldehyde and is, therefore, appropriate for use around your bathrooms and kitchen.
3. Gerbera Daisy
This bright and beautiful flowering plant is a pleasant sight. It adds warmth and energy to your home. Gerbera Daisy is an excellent plant for reducing stress and anxiety.
The plant removes Trichloroethylene and benzene from your space. It is an amazing plant for use both at home and in your office. The plant requires plenty of light and soil drainage. You need to mist its leaves every few days.
4. The Snake Plant
The snake plant is popular for its healing properties. It was traditionally used to boost energy levels and prevent headaches. It may reduce the Benzene levels in your home by up to 53% and Trichloroethylene by up to 13%.
The plant is great for relaxation. It lowers stress and blood pressure, improves reaction time, and promotes a peaceful night’s sleep.
Lavender is a houseplant from the mint family. It is one of the best options for de-stressing your home. It has a beautiful calming scent that may promote relaxation and help with sleep .
Common benefits of lavender include treating insomnia and reducing anxiety. The beautiful herb requires some effort. Grow it close to a bright south-facing window. It requires lots of light for optimal growth. This houseplant can be very useful if you spend most of your time at home.
Houseplants can improve the quality of your indoor air. Aloe plant, lavender, and snake plant are some of the best options for improving the atmosphere in your home and purifying the air. They get rid of benzene, carbon monoxide and trichloroethylene. Since you spend most of your time indoors, ensuring that you have healthy indoor air should be one of your top priorities. It is a simple way to support and protect your family.
An open house enables a buyer to check out a residence in-person and determine if this home matches or exceeds his or her expectations. However, a buyer who fails to plan ahead for an open house may struggle to make the most of this opportunity.
Ultimately, there are several things you need to consider before you attend an open house, such as:
1. Your Home Must-Haves
Make a list of must-have home features – you will be glad you did. With this list in hand, you can check out a house in-person and determine if it has the features you require.
You also may want to put together a list of preferred cities and towns prior to launching a house search. This list will allow you to hone your home search – and your search for open house events – to a small group of cities and towns.
2. Your Homebuying Budget
As a homebuyer, it is crucial to optimize your time and resources as you search for your dream residence. If you enter the housing market with a budget at your disposal, you can avoid the risk of attending an open house for a residence you may be unable to afford.
To establish a homebuying budget, you should review your current finances. You may want to meet with banks and credit unions as well. And if you get pre-approved for a mortgage, you will know exactly how much you can spend on a residence when you start your house search.
3. Your Homebuying Timeline
There is no guarantee that attending one open house will help you find your dream residence. But if you maintain flexibility, you can attend a variety of open house events and boost the likelihood of discovering a residence that falls in line with your expectations.
Furthermore, you should be ready to act quickly if you attend an open house and want to buy a residence following the event. In this scenario, you should be prepared to work diligently to put together a competitive offer to purchase the home.
As you get set to attend an open house, you may want to employ a real estate agent, too. A real estate agent can keep you up to date about open house events in cities and towns where you want to reside. Plus, a real estate agent can attend an open house with you and provide plenty of homebuying tips and insights.
Let's not forget about the support a real estate agent provides once you find a house you want to purchase, either. At this point, a real estate agent will help you put together a competitive homebuying proposal. And if your offer to purchase is accepted, a real estate agent will help you finalize your house purchase.
Consider the aforementioned factors closely before you attend an open house. By doing so, you can prepare for an open house and use the opportunity to determine if a residence is right for you.
Up to 9.2 million Americans will purchase their first home in 2020. Homeownership is a wonderful and sometimes overwhelming experience. It's exciting to have a place that you can personalize and call your own. However, owning a home can quickly become a burden if you don't plan carefully. Keep in mind these five tips to make your first-time home-buying experience a success.
Essential tips for first-time homebuyers
1. Save until you have a 20 percent down payment.
Paying cash for a home is out of reach of most families. However, there are big advantages if you have at least a 20 percent down payment to offer. This automatically means that you won't have to pay for private mortgage insurance (PMI), something that generally adds a full one percent to the cost of your loan. In addition, a sizable down payment means you'll likely have equity in your home when it comes time to sell.
2. Get pre-approved for a loan.
When shopping for your first home, it's easy to fall in love with a property that may be a little beyond what you can comfortably afford. Getting pre-approved for a loan lets you know what you can safely pay for home payments. Plus, the sellers will know that you're serious about buying and that financing won't be a problem for you.
3. Get your agent's advice on how much to bid.
Real estate markets vary dramatically around the United States. Your local real estate agent is well-suited to help you navigate the market in your particular region. In some high-demand areas, you may need to offer more than the listed price, but in most areas, a seller is likely to accept an offer below the listing price, especially if the property has been on the market for a few months.
4. Be prepared for closing costs.
Closing costs, the money that you'll owe at closing for property taxes, title insurance, the title company's fee and other related costs, can be a surprise to a first-time homebuyer. These costs can vary between 3 and 5 percent of the total purchase price. The average closing costs for a single family home is $3,700 and is due when you sign the purchase papers, usually between 30 and 45 days after your offer is accepted.
5. Make sure you have an emergency fund.
While it may be tempting to sink your all of savings into your new home, what with a deposit, closing costs, insurance and doing any necessary remodeling, it's important to put a few months' mortgage payments in an emergency fund just in case life throws you a curveball. Many things can affect even the most responsible homebuyer's ability to pay their mortgage, things such as illness, job loss or a reduction in work hours. Plus, you'll sleep better at night knowing that you have that financial cushion.