How to Refuse an Offer of Purchase: A Step-by-Step Guide 

When selling a property in Victoria, BC, receiving an offer of purchase is an exciting milestone. However, not every offer will align with your expectations or goals. If you find yourself in a position where you need to refuse an offer, it’s essential to handle the situation professionally and in compliance with local real estate regulations.In this blog, we’ll walk you through the process of refusing an offer of purchase, ensuring you manage the situation effectively while maintaining a positive relationship with potential buyers.

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1. Review the Offer Thoroughly

Before making any decisions, carefully review the offer of purchase. Ensure you understand all terms and conditions, including:

• Offer Price: Compare the offered price to your asking price and market value.
• Contingencies: Check if the offer includes conditions like home inspections, financing, or sale of the buyer’s existing home.
• Deposit: Note the amount of earnest money or deposit being offered.
• Closing Date: Evaluate whether the proposed closing date aligns with your plans.

Reviewing these details will help you determine whether the offer is reasonable or if there are specific terms that need to be addressed.

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2. Consult Your Real Estate Agent

If you’re working with a real estate agent, discuss the offer with them. Your agent can provide valuable insights and advice based on their expertise and knowledge of the local market. They can help you assess the offer and strategize the best approach for declining it.Your agent can also draft the necessary documentation and communicate your decision to the buyer's agent professionally.

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3. Consider Your Reasons for Refusal

Before officially refusing the offer, clarify your reasons. Common reasons for refusing an offer include:

• Price: The offer is below your acceptable price range.
• Terms: Unfavorable terms or contingencies that you’re not willing to accept.
• Timing: The proposed closing date does not work for you.
• Buyer’s Conditions: Concerns about the buyer’s ability to complete the purchase.

Understanding your reasons will help you communicate your decision clearly and professionally.

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4. Draft a Formal Rejection Letter

To refuse an offer of purchase, you should provide a formal rejection letter. This letter should be clear, concise, and professional. Here’s a basic outline of what to include:

• Date: Include the date of the letter.
• Buyer’s Information: Address the letter to the buyer or their agent.
• Property Details: Mention the property address.
• Offer Details: Reference the offer being rejected, including the date of the offer and the proposed terms.
• Rejection Statement: Clearly state that you are refusing the offer.
• Optional: You may include a brief explanation for your decision or mention that you’re open to receiving revised offers.
• Signature: Sign the letter or provide an electronic signature if sending digitally.

Sample Rejection Letter:

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[Date][Buyer’s Name]
[Buyer’s Address]
[City, Province, Postal Code]Dear [Buyer’s Name],Subject: Refusal of Offer to Purchase - [Property Address]Thank you for your interest in purchasing [Property Address] and for submitting your offer dated [Offer Date]. After careful consideration, we regret to inform you that we are unable to accept your offer at this time.We appreciate the time and effort you put into your offer, and we wish you the best in your home search. If you have any questions or wish to submit a revised offer, please feel free to contact us or our real estate agent.Thank you once again for your interest.Sincerely,[Your Name]
[Your Contact Information]
[Your Real Estate Agent’s Contact Information, if applicable]

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5. Notify Your Real Estate Agent

Once you’ve finalized the rejection letter, ensure that your real estate agent is informed. They can assist with the next steps, such as:

• Communicating with the Buyer’s Agent: Your agent will forward the rejection letter to the buyer’s agent and handle any further communications.
• Updating Listings: If the offer was contingent on certain conditions, your agent can update property listings to reflect the current status.
• Reviewing New Offers: Your agent will continue to field new offers and help you navigate the process of accepting a more suitable offer.

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6. Maintain Professionalism

It’s crucial to handle the refusal professionally to maintain a positive reputation and keep the door open for potential future transactions. Here are some tips:

• Be Prompt: Respond to offers in a timely manner to avoid unnecessary delays or misunderstandings.
• Be Courteous: Express gratitude for the buyer’s interest and effort.
• Be Clear: Ensure your rejection is communicated clearly to avoid any confusion.

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7. Reevaluate Your Strategy

If you’re consistently receiving offers that don’t meet your expectations, it might be time to reevaluate your selling strategy. Consider:

• Adjusting Your Asking Price: If multiple offers are below your asking price, it may be worth adjusting your expectations or pricing.
• Reviewing Terms and Conditions: Ensure your listing clearly communicates any terms or conditions that might affect offers.
• Improving Property Appeal: Consider any improvements or staging that might make your property more attractive to potential buyers.

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Conclusion

Refusing an offer of purchase in Victoria, BC, is a standard part of the real estate process. By following these steps, you can handle the situation professionally and effectively while keeping your selling goals in mind. Working with a knowledgeable real estate agent can make the process smoother and ensure that your decision is communicated clearly.If you’re navigating the sale of your property and need expert advice, contact a local real estate agent to help you manage offers and make informed decisions.