Why Has the Seller Countered?
Counteroffers typically involve things like changing the price the buyer will pay for the property or increasing the size of the earnest money deposit. The seller might also refuse to pay for certain reports or fees in a counteroffer. Changing the closing or possession date is another common reason for a counteroffer, as is excluding or adding personal property from the purchase. The seller might want to modify contingency time frames or have deposits released early. She might also want to add amendments.
How Many Counteroffers Are Typical?
Just as a seller can submit a counteroffer to a buyer, a buyer can counter the seller’s counter, which then becomes a counter-counteroffer or Buyer Counteroffer No. 1. There is no limit to the number of counteroffers that can go back and forth. Here’s an example of five counters on a property that was listed at $415,000. The buyer had submitted a lowball offer of $400,000. This was the result: The buyer finally accepts the fifth counter, both parties sign the contract, and the sale proceeds.
How Is a Counteroffer Rejected?
Sellers can accept, reject, or make a counteroffer to any bid they receive. If they do opt to reject an offer, there is often a spot near the bottom of the contract form where they can initial that the offer has been rejected. They also might choose to write “Rejected” across the face of the contract and then initial and date it. Sellers (or their agents) can also reject an offer orally. Sellers also have the right not to respond at all. The listing agent can email the buyer’s agent to communicate the fact that the seller will not respond because the offer is unacceptable, but sellers generally aren’t required to formally reject an offer in writing.
How Is a Counteroffer Accepted?
The buyer can simply accept the counteroffer and deliver it back signed to the sellers and their agent. Time is of the essence, though, as every counteroffer includes an expiration date. It’s also important to note that the seller can accept another offer while the buyer is deciding whether to move forward—another reason to act quickly when a counteroffer is on the table. If the seller does get a more favorable offer while the buyer is deciding, the seller will typically withdraw the counteroffer, effectively removing the first buyer from the situation.
Can Sellers Make Multiple Counteroffers With Multiple Buyers?
Depending on your state’s laws, a seller may or may not be able to issue multiple counteroffers to more than one buyer. In some areas, sellers can counter more than one offer simultaneously. Each counteroffer can be different in terms and price, too. Generally, most real estate agents do not recommend that sellers make multiple counteroffers at once, as it could lead to two legally binding contracts simultaneously.
