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Does the counter offer void the original offer?
A counter offer is a “reply to an original offer, which is greater or less than the original price. This type of offer voids a previous offer and the entity that presented that offer is no longer legally responsible for it.”
Once a counter offer comes in, it changes the terms of a contract officially.
With a counter offer, Magua added, you’ll want to institute a time limit to keep the deal moving quickly in one direction or another and prevent the house from stalling on the market.
“The problem with a totally open (time frame) is that there is a time gap problem,” Magua said. “What if another buyer comes in with a higher offer? You’re going to have to execute very quickly and very wisely without getting the first offerer riled up knowing that there is another offer on the table.”
It’s important to not quickly reveal to the buyer’s agent that another offer may be coming in, particularly when you’re in a counter offer situation.
“If you are getting another offer, you don’t really want to tell them until that offer arrives,” Magua said. “Then you can see what you’re dealing with.”
Can the seller make a counter offer on a full-price offer?
You bet. It may seem counterintuitive, but even though an offer may be full price and look great, what if the terms do not?
That’s why a counter offer always has those three aspects to it — price, convenience, timing — because the highest bid isn’t always the best package deal for a seller. You may still need to negotiate on who pays for the title search and whether you’ll include a home warranty, and terms like closing deadlines and the move-out date before you’re ready to sign on the dotted line.
Can you issue multiple counter offers to more than one buyer?
Yes, you can — verbally. However, you need to proceed with caution. “See, there’s a catch,” Magua said. “You’ve got to do it by the law, you’ve got to be ethical, you’ve got to look after the transaction.”
So your agent must tell all other agents that there are multiple offers and will verbally counter them all.
“You’re dancing,” Magua said. “You’re not going to hold hands; you’ll maybe just have your hands close to each other. It’s something to the effect of ‘we’re not going to give a written counter, but these are the terms that my seller is acceptable with. I’m going to share these same terms with other buyers’ agents.’”
There is no universally accepted law regarding multiple counters. In California, buyers must be notified in writing that there are multiple offers on the table. In other parts of the country, no such notification is required. In any event, sellers must be very careful that they do not sell their home to more than one party. As the seller, you’re also risking losing a good buyer by doing this if they decide the situation is too risky.
