The life of a real estate purchase offer....
Sellers may be in a situation where they receive what they think is an acceptable offer, one that they wish to work with, and then proceed to counter that offer. What happens if, prior to acceptance by the buyers, the sellers get another better offer. Are the sellers trapped?
No, the sellers may revoke that counteroffer, as long as it is done in due time. The definition of "due time" and "properly done" can get technical, and a little too involved for this current blog. If it is not explained carefully by your agent, and if it is not carefully documented, it can be a costly matter.
But the reason for this blog is not to explain the above, it is to stress that many buyers, (improperly informed by their agent), think they can take their time to respond up to the expiration of the time stated on the counteroffer. That period of time however can be cut short by a seller's revocation of their counteroffer prior to the buyers' acceptance and delivery.
Buyers should be aware that the clock is ticking on their response from the time they have received the counter offer, and that they may not have until the expiration to respond. Buyers who are eager should, therefore, get their response back to the seller as soon as possible after they have received a counter offer - before any revocation can occur.
Hot markets create situations that agents do not usually encounter in slower markets. It is important to have a knowledgeable agent on your side to keep you informed of your options, and pitfalls to avoid. The decision is always the clients' to make in the end, but it is important to understand the rules of the game - and I prefer to say, it is important to precisely understand the language of the counteroffer that is given to you. This is where your agent can save you a lot.
Thank you for reading,
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates