What is a counteroffer and what role does it play in a potential real estate transaction?
Typically, a counteroffer is generated by a seller when a buyer presents an offer that has some items or terms that the seller does not agree with. Items addressed by a counteroffer can include closing costs, the purchase price, the closing date, or particulars in the loan agreement, among other things.
However, the seller is not the only party that can submit a counteroffer. A buyer can submit a counteroffer back to the seller and there are no limits on how many counteroffers can be presented until both parties agree.
There are a couple ways in which a counteroffer can be rejected. If you’re a buyer, your agent will let the seller’s agent know that there are still some items you are not in agreement with. You can then submit a counteroffer back to the seller. It works the same way if you’re the seller. The other way to reject a counteroffer is to let the time on it expire.
Just like a purchase agreement or sales contract, there will be lines for everyone to sign on a counteroffer. A counteroffer has been officially accepted when all the required signatures are present. You want to make sure those signatures are present and the counteroffer is submitted before the expiration date.
If you have any other questions, please feel free to give me a call or send me an email. I look forward to hearing from you!