In a real estate contract, home sellers usually write counter offers when they aren’t satisfied with the offer. Counteroffers usually say that the seller accepts the offer subject to certain changes. Usually, the changes include a sales price, removal of contingencies, closing date or earnest money deposit.
Why Does A Seller Counter?
The typical reasons for sellers counter offering are the sale price and increasing the earnest deposit. A seller may also not want to pay for fees or reports that the buyer was requesting. Changing the possession date is another reason sellers counter as well as adding or excluding personal property in the purchase.
Sellers oftentimes want to change or modify the contingency time frames and have earnest money released early. In some cases, the first offer is perfectly fine and both parties agree to it and accept it.
How Many Times Can a Buyer Counteroffer?
A buyer and a seller can exchange multiple counter offers during a negotiation, with each counter offer being designated a “counter-counter offer” or a “Buyer Counter Offer No. 1” as the negotiation progresses. The back and forth negotiations can be limitless as long as both parties continue the negotiations or terminate the transaction altogether.
How a Counteroffer is Rejected.
A seller can either accept or reject a counteroffer. If the seller chooses to reject the offer, they can use a specific section of the contract to indicate their rejection, initializing or dating it as rejected. They can also reject the offer verbally. To ensure all bases are covered, it is recommended to reject the offer using all of these methods.
However, it should be noted that a seller also has the option to not respond to the offer at all. This can be communicated by their listing agent, indicating that the offer is unacceptable to the seller, which although unusual, may happen.
How a Counteroffer is Accepted.
A buyer can access the counteroffer and sign it and it is delivered back to the sellers and their agent. Time is usually important in this because counter offers expire after 3 days. During that time, sellers can’t accept another offer while a buyer is deciding whether to accept a counter or not. As the buyer, it is important to move quickly.
Can Seller™s Submit Several Counteroffers with Many Buyers?
Calgary Real Estate Expert Greg Kennedy offers this response: “Yes, sellers can make multiple counter offers with multiple buyers. However, it is important to note that in most cases, making a counteroffer to one buyer implies that the seller is no longer considering offers from other buyers.
Additionally, if the seller is represented by an agent, the agent may have a legal or ethical responsibility to disclose any competing offers to the buyer. It is also important for the seller to be aware of their local real estate laws and regulations regarding multiple offers and counteroffers.”
With so many ins and outs in the real estate purchasing process, you want to make sure you are working with a knowledgeable agent who can help you understand each step and your legal rights along the way. Counteroffers are just one small part of the entire home buying and selling process.