Should I put a deadline on my offer when buying a home?

When you make an offer on a home, it can feel daunting to say the least. It's a jump into the unknown which raises multiple questions...

"Will the owners accept my price?"

"Did I offer too much?"

"Will another buyer outbid me?"

When faced with multiple unanswered questions, our natural response is to try and control what we can.

Many buyers at this point feel an urge to place a deadline on their offer, usually for 24 - 72 hours. Buyers hope that a deadline will result in a quicker answer from the owners. Buyers also hope that by putting a time limit on the negotiation, they will avoid having their offer used as leverage to bring other buyers to the table.

Sadly, deadlines usually attract a negative response from owners. They too feel vulnerable in this situation. Owners want control of when and how they decide to part ways with their biggest asset and their emotional safe-place. Also known as, their home.

When buying a home, patience is key...

If you make an offer and you don’t hear back straight away, or even after two or three days, don’t panic. Often what this means is that the owner is considering your offer. And if they’re considering your offer, that’s a good thing.

In a real estate negotiation, the best thing you can give an owner is time. If your offer comes in lower than what they were hoping to sell the property for, then it is going to take time for them to adjust their expectations in light of the value feedback you have just provided.

Sometimes owners need a night or two to talk it over with family. Time to decide if your offer is enough to allow them to do want they want to do in life.

When an owner ends up accepting an offer, they want to be sure they have achieved the best possible price they could. If you want an owner to respond positively to your offer, give them time to realise that yours is the best option.

Fixed deadlines work in the opposite way, making owners feel pressured into making a decision. From our experience, this can lead to offers being rejected out of principle, even when the price being put forward is somewhere near fair market value.

But I actually need an answer asap!

If you have a hard deadline you are working to, then tell your salesperson so they can explain this verbally to the owner in the right way, at the right time.

If you have made an offer already and you don't feel comfortable waiting any longer, reach out to your salesperson. Ask for honest feedback on why they think your offer hasn't been accepted.

Make changes if you can to keep the negotiation moving. Even small adjustments can make a big difference.

If all else fails, you can choose to withdraw your offer. That option is always at your disposal, whether you place a deadline in the contract or not.

Do you have more questions?

We love helping our clients make smart real estate decisions. Contact us today to discuss your requirements and find out how we can help you find and transition into your dream home.