Revoking a real estate counteroffer.

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,

Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates

Buying a home, second thoughts...

Many recent homebuyers would make different choices if they had a second chance, according to a study commissioned by JPMorgan Chase & Co.

New homeowners say they wish they had done more homework at the outset of their home search and purchase process.  Nine of every 10 buyers felt prepared when they bought their home, but in hindsight, 56% wish they were armed with more knowledge about the financial aspects of purchasing a home, such as the closing process (22%), making an offer and negotiating (19%) and financing (15%).

Many recent homebuyers were surprised by how long the home-buying process took:  40% say it took longer than they expected.  And while more than 80% of buyers had considered their home move-in ready, 76% have done or are planning to do renovations to their home in the near-term.

Two thirds of recent homebuyers sought advice from real estate agents, the study finds.

"While consumers said they felt prepared to buy a home and were satisfied with their home purchase, our results found that there are challenges and areas for improvement," says Lisa Foradori, chief marketing officer for Chase Mortgage Banking.

Many Realtors come from the teaching profession, and there is a good reason for that: to be a good agent, one needs to have a passion for explaining why and how things work during the buying (or selling) process.  And even when clients have bought real estate in the past, they need someone on their side who knows what has changed recently, both in the market place, and in the profession (new forms, new rules and laws, new tools).    I always advise my clients to work on their loan qualifications first: there are many choices involved in getting a loan, and choosing the right loan should not be an afterthought.

Thanks for reading!
Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates