You are obligated to present all offers and counteroffers in a timely manner, unless directed otherwise in writing. It is not up to you to determine whether and offer is “acceptable” or “too low or high”, the decision is for the customer to make. You shouldn’t assume that a previously countered price is where the customer is willing to settle. Each offer is to be presented to the customer. Furthermore, our listing agreement specifically states that we will only present written offers. Don’t fall into the trap of, “Can you call and ask if they are willing to accept that price so I don’t waste my time making an offer?”
An offer and contract are NOT the same and the words are NOT interchangeable. When an offer is on the table and being negotiated, the property is still available to any and all buyers or tenants. When a property is under contract, the property is only available for back-up contracts.
When you draft an offer, make sure it is properly filled out. Make sure it includes al necessary information and initials/signatures. Don’t lease blanks where a decision is needed. Basics of an offer are:
- identify the parties
- identify the property
- offer price and terms are clearly expressed
- consideration is offered (or the promise of consideration)
- the offer includes all necessary addenda
- the offer is initialed and signed accordingly
An offer is valid for a specified period of time as written and presented. Any changes to the offer are considered a counteroffer. The offeror (person making the offer) can withdraw the offer any time prior to acceptance.
Remember the following:
- a seller/landlord is not required to accept an offer, even if at list price (maybe the terms are not good for the owner)
- a seller is not required to negotiate an offer
- a seller is not required to reject an offer in writing
- a seller is not required to respond to offers in the order in which they are received
Counteroffers
A counteroffer is a rejection and counter to the initial offer. Since a counter offer is a rejection, the initial offer is no longer on the table.
Counteroffers are typically made on the same form that the initial offer was made. Do not use white-out to make changes! Changes are made by a single line being drawn through the item to be modified (ex: price, inspection period, etc), and all changes are initialed by the party making the counteroffer. All pages of the offer/counteroffer need to be sent to the cooperating agent (not just the page with a change).
Multiple Offers
Owners can entertain multiple offers. See the section Multiple Offers that goes into more detail.
Property is Available Until an Executed Contract is Formed
You could end up missing out on a deal if a better offer comes along, and you fell into the trap of verbal negotiations (not enforceable), or were sloppy and forgot to double check that all necessary initials and signatures were in place.