Counter Offers in Real Estate – How They Work

August 10, 2017 Facebook Twitter LinkedIn Google+ Online Auction

Odds are that if you make an offer on a piece of property you will receive a counter offer. Even if you offer the list price there might be issues the seller might want. After you submit an offer to purchase. The seller will typically response within 3 days with a, counter offer. The counter will indicate that the seller has either accepted your offer (buyer) subject to the following changes or they might flat out reject the offer. Normally the counter will address the following items:

• Total sales price (generally a higher price)
• Increasing the deposit amount
• No credit to pay for certain reports or fees
• service providers
• closing or possession date
• Excluding personal property
• changing contingency time frames

Normal Number of Counters to Expect?

Just as a seller can submit a counter offer to prospective buyer and the buyer can counter offer the seller’s , this is called a counter-counter offer AKA Counter Offer #2. Keep in mind that there is no limit to the number of counter offers. As long as you maintain communication there can be counters back and forth.

How are Counter Offers Rejected?

One thing to remember is that the seller does not have to respond to an offer. Believe it or not this happens quiet often. Normally you’ll see this on properties that are very aggressively priced and there are too many offers to deal with. Sound strange but true, happens all the time. If the offer is full price and meets the sellers terms, chances are the broker/agent will need to be compensated. So just because an offer is ignore does mean that the seller isn’t liable to the broker. Here are the most common ways to reject an offer:

• Most purchase contracts provide a area near the bottom for the seller to initial that the offer has been rejected.
• Sellers can also write across the face “rejected” on the contract, initial and date it.
• Most offers offer have an expiration date.

Multiple Counter Offers?

In California, it’s fairly a simple process. Sellers can and counter multiple offers, contrary to common believe each counter can be different. If one of the so called buyers accepts the seller’s counter under these conditions, the seller in this situation still may not accept the buyer’s confirmation or acceptance if he so chooses.

Acceptance of a counter

If the counter offer is issued by the seller, the buyer once he receives can accept the counter offer, sign date and send it back to the seller or the party designated to receive it, fax, pdf. Very important to remember that time is always of the essence. Counter offers have expirations date, 1 day, 3 days, 5 days they work just like purchase offers, this mean to you that the seller can accept any other offer while the buyer is thinking about it.

Luis Pezzini