Received an offer that I do not want to join

Hello, I have been interviewing for sometime now and recently received an offer from a small org which I'm not very keen on joining.

Yet, I am planning to put down my papers and find something else during the notice as I noticed a lot of firms giving preference to people serving notice period. Also, finance is not a problem for me even if I don't find something good soon enough.

I hope it works out well. In case if you had been in similar situation before, let me know if this is the right thing to do.