You’ve made your first offer on a house but it’s been rejected, what’s next? You are now wondering how long to wait before making a second offer.
So how long to wait before making second offer on house? You should wait at least 24 hours before making a second offer on house. This gives you time to gather your thoughts, to think about if you can afford an increase and whether or not the house is worth any more. The main factors to consider how long you wait include other offers and the strength of the property market.
Of course you can put another offer on a house, but how long do you wait?
The house offer waiting game – how strong is your nerve?
The house offer waiting game is about who has the strongest nerve. Who blinks first will lose this game. But often it’s more than just about wining or losing a game.
It could mean losing the house of your dreams. Or on the other hand it could mean you over-pay for a house, when if you’d waited you might have paid less.
But never counter offer on the phone when the estate agent calls to reject your first offer. Always take time to reflect and ideal wait the 24 hours before your counter offer. Unless there are other strong offers and you’re desperate to buy this specific house.
Before you make a second offer on a house, think about whether you’re prepared to walk away? Think about how keen you are on the property and whether you’re really desperate to buy this specific property.
Time can be on your side when deciding on how long to wait before making a second offer
Ultimately, time is the only factor that will budge a stubborn seller on a property that is priced out of the market.
At the end of the day, offer what the property is worth to you. However, if your offer is rejected, walk away and continue with your house hunt. But monitor the progress on Rightmove for any price reductions.
Be clear about what you are offering. Is your offer open to negotiation or is it your best and final offer?
But before you can consider how long to wait before making second offer on house, it’s important to first look at offering on house strategies.
Offering on house strategies
There are a few strategies to follow with the offering process. The one you choose will be based on a number of factors, which I explain further on in this article.
Property negotiation strategies
1. The offer and walk away approach
If this is the approach you are adopting, make sure to tell the agent your offer stands if and when it’s rejected. Follow it up a month later. This approach only works if you are genuinely prepared to walk away from the deal. Listen to your gut.
2. A small incremental second offer over the first offer
Psychologically if your second offer is only a small amount over your first offer it gives the impression you’re close to your highest bid.
A second offer of a very small amount over the first offer sends a message to the seller. Which is, you’re open to negotiate on the price, but not by a huge amount.
3. Ask for a counter offer
If you ask the seller or the estate agent for a counter offer this indicates how large the gap is between your first offer and what the seller is prepared to accept. This provides more information on which to base your second offer.
4. Going in very low first followed by a relatively large second offer
This offering on house strategy really only works in a face-to-face with the vendor. Going in with a very low offer in the first place may alienate the seller, but if it doesn’t it’s a good way to begin negotiations.
If you go in very strongly below asking price, you know it will be below what the seller will accept, but if you follow this up with a significant jump as a second offer, this can often force the seller to counter.
5. Offer what you think will get the property because you love the house
This approach is only to be used if this is your dream house and if you can’t bear to lose it. Plus only if you can afford the offer you make. But don’t get blinkered. Consider the various options in the offering process listed below.
6. Put in two or more offers
This strategy is more likely to be of benefit to property investors. It works by changing the reaction from a yes or no to one offer, to making the seller consider options.
What to consider when making a second offer on a house
When making a second offer on a house be careful not to out-bid yourself. If there are no other offers on this property be careful not to increase your offer by too much.
In considering how much to increase your offer, look at how long the property has been on the market and how keen you are to buy this house.
But be aware of rogue estate agents and ghost bidders.
That being said, what should you consider before making a second offer on a house. Plus how long should you wait?
What to consider in deciding how long to wait before making a second offer:
- How much you can afford. Can you afford to make a second offer?
- What the property is worth – do your research. If it’s only worth what you originally offered, a second offer makes no sense.
- The strength of the property market. Is it a buyers market or a sellers market? If it’s a buyers market, you can afford to wait longer or simply leave your offer on the table. But if it’s a sellers market you might not want to wait very long.
- How long the property has been on the market. The longer it’s been on the market, the longer you can wait before you make a second bid. Or even just wait for the buyer to come around to the idea that your first offer is high enough.
- How many other similar properties are available. If you have a choice of properties, this might mean you don’t need to make a second offer.
- The ‘strength’ of your position as a buyer. Are you proceedable? Vendors don’t always take the highest offer, some will agree to a lower offer for a more proceedable buyer. If your position is stronger than the competition you can afford to wait longer.
- Are dealing direct to vendor. If there’s not estate agent influencing the negotiations, this often times makes it easier to get a feel for what the seller will take. If you’re face to face with the seller you can counter right away. Or if you know things are in your favour, tell them your offer stands and walk away.
- Your rapport with the seller. If the seller likes you they may feel more obliged to accept your original offer. This may also play into how long you can wait to increase your offer.
- Are you buying the property for yourself to live in or is it an investment purchase. This is referred to as the emotional value in the property. The lower the emotional value, the longer you can wait beofre making a second offer.
- The offering process can be affected by the estate agent. Some estate agents play a bigger role in advising a seller about whether or not to accept an offer. Be strong and stand your ground with the agent.
- Have there been other offers. Don’t out-bid yourself and be aware that estate agents often play games and put forward other offers ghost bidders. But if you can establish the other offers are genuine and if any are higher than you offer, you may not want to wait too long before making a second offer.
- The mortgage valuation will provide support to what a house is worth. You may have a problem if the mortgage valuation comes in lower than your accepted offer. So be mindful of this before considering a second offer at all.
- Work required on the property. If the house requires work, like a new kitchen, this will impact on your highest offer. Use this in the negotiation when you make the second offer.
- The longer the delay between offers will be harder on the seller psychologically. This is particularly true if the seller is very keen to sell. A trick is to always ask the agent or the seller why they are selling. Knowledge is power when negotiating. If you know they are desperate to sell, the longer you leave it before you make a second offer, you may find you don’t have to make another offer at all.
- The sellers reason for selling. Are they under pressure? Do they need to move quickly. If you know there are no other offers and you know the seller wants to move quickly, you’re in a better position to wait for longer than they are. So take your time.
- Make sure you keep looking and especially with the agent selling the house with your offer in place. This shows you’re not too keen. This might bring focus to the estate agent who is keen to make their commission and encourage the sale.
- Never show how keen you are to the agent or the seller when viewing the house. This will encourage the seller to hold out. If they don’t know how keen you are you can take more time before you make a second offer.
- How long you’ve been searching for a new home. If you’ve been searching a long time you may want to go back with an offer a bit quicker. This is especially true if this is a house you’re keen to buy.
- Are you desperate to move. Are you relocating for example. If you are you may not have the time to wait too long between your first rejected offer and a second offer. But an alternative is you can always rent temporarily.
- How cheeky your offer was in the first place. If you offered very low in the first place, it may be the seller may not even both to come back to you. This may mean you need to go back sooner rather than later. But think about the house offering strategies discussed above.
Other things to consider in how long to wait before making a second offer
It’s worth taking a moment to put the negotiating process into a bit of perspective. For example, if an offer is accepted right away, you’ll never know if you offered too much.
At least if your first offer is rejected, you know you’re below what the seller would accept. The aim of your second offer, if you decide to increase your first offer, is to find out what the seller is prepared to accept.
So instead of feeling rejected if your first offer is rejected, be happy in the knowledge you didn’t over-pay for the property. There’s nothing worse than someone accepting your first offer too quickly. You’ll be left wondering if you ‘left money on the table‘, or in order words you paid too much.
Therefore don’t worry about going in too low.
But never over-think this. If you only ever pay what you think the property is worth to you. Plus so long as you’ve done your homework and researched the area, you should sleep easy with whatever offer you make. This is regardless of whether it’s accepted or rejected.
Estate agents can be at fault in the offering process
There are too many estate agents that play a terrible game and over-value properties. They do this to win the sale.
But the problem this causes the seller is they can get fixated on this valuation. Estate agents know this and instead of thinking about what a property is worth to buyers, they sell to the vendor.
A valuation that’s higher than a the seller thinks is worth is music to their ears. Sellers think they are going to get more money. But they soon discover after its been listed and after no viewings the agent suggests lower the price. This is a bad strategy, but is worth knowing as a buyer.
Because home owners now think their property is worth what the agent first told them, they find it extremely difficult to budge on this price.
Reasons when you shouldn’t increase your offer
There are times when you shouldn’t even consider an increased offer. These include:
- No other interest: As already mentioned, you don’t want to be bidding against yourself. If yours is the only offer, time is on your side. If no other offers come forward, the seller may finally accept your offer. But keep your eye on the property and keep in regular contact with estate agent.
- Time on the market: The longer a house is on the market unsold, the more desperate the seller will become. If you’re not desperate to move and if you have time to wait, the time-clock will be more painful to the seller.
- Are you in a strong negotiating position and chain free: If you are in a strong position a seller is more likely to accept a lower offer from you than someone who’s not. If you are chain-free vs someone else who has a house to sell, you are more proceedable (see below for a scale of buyer’s strength).
- Are you prepared to walk away: Ultimately your decision will come down to this. If you’ve found your dream house. If you’ve spent weeks or months looking for somewhere to move to. This will impact on your offer. If this is the case, don’t hesitate too long with your second offer, but take all the other facts considered in this article into account. But above all, only pay what you think the house is worth to you and what you can afford. But remember if you are taking out a mortgage, this may be the deciding factor of what you can pay the seller.
When should you make a second offer on a house?
You should only make a second offer on a house if there’s been other offers or if you’re really keen to buy this property.
Be careful not to out-bid yourself, especially if you’ve done your research on what the house is worth. Be aware of ghost offers. Estate agents often create fake offers to get increased bids.
Strength of buyers on a scale of weak to strong:
- Not started to market their own house.
- House is on the market but no firm offers on the table.
- House is sold and proceeding to exchange.
- No house to sell, which could mean a first time buyer, the buyer has already completed the sale of their house and are living in rented accommodation or the buyer is an investor.
Please don’t forget to read this before you leave…
Please don’t forget to also read this article to discover how you could save £71,475 on your next mortgage if you sell your house and rent before buying again. As I said earlier, even I was amazed when I did the calculations!
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