REALTOR® Magazine Online: What to Do When Sellers Say No

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What to Do When the Seller Says 'No'

Review and update your comparable market analysis. Use this data to illustrate why the buyers’ price makes sense.

Explain real prices. If a buyer pays $5,000 in lender points, a $145,000 sale price is actually $150,000.

Explain the risk of waiting. The sellers might get a slightly higher offer in the next 60 days, but what if interest rates go up by then and there are fewer buyers in the market.

Explain the risk of rejecting an offer. If the sellers are presented with an offer of $149,000 on their $150,000 house and they counter at $150,000, they are gambling $149,000 to gain $1,000.

Emphasize the financial soundness of the buyers. Remind the sellers that a higher price means nothing if the deal doesn’t close.

Resell the original offer. If the sellers won’t budge, wait two or three days and present the offer again.

Source: Portions adapted from "Power Real Estate Selling," by William Pivar (Longman, 1988)

Taking the Sting Out of a Contingency Clause

In reviewing the offer with the sellers, pay particular attention to contingency clauses. What may seem to be a minor point now might destroy the deal later.

Be sure that a contingency clause:

States the exact purpose of the contingency so its scope cannot be expanded later in the transaction.

States exactly what will happen, including any forfeitures or damages owed, if a condition does not occur.

Avoids subjective language — a suitable home, in a reasonable amount of time — which can lead to disputes later. Also, each contingency should be broken down with two words: ‘If’ and ‘then.

Sets realistic time limits — neither unreasonably short or too lenient — to complete contingency conditions.

Indicates if the seller can cure any problems found during an inspection.

Is removed from the contract once the condition has been met; or is initialed by both parties as it is satisfied.

Source: Portions adapted from “Contingency Clauses,” by Ted Marois (Sacramento REALTOR^®, May 1989)

Bad: "This contract is contingent upon buyer obtaining financing." In this example, Bass explains the problem: “Does it mean the buyer has an obligation to go obtain financing and to cooperate? Within what period of time? It just doesn’t cover what happens if the buyer doesn’t get a loan? What happens then?

Good: "This contract is contingent upon buyer obtaining a new conventional loan at an interest rate not to exceed 7 percent. If, after making good faith efforts to obtain that loan, the buyer is unable to qualify, then the buyer may cancel, in which case the earnest money will be refunded." “If the contingency fails, here are the buyers’ rights,” says Bass.

8 Ways To Handle Multiple Offers >

Keep It Ethical
If you’re unsure, consult an attorney; don’t engage in activities that might constitute the practice of law. Article 13

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