Offers in Real Estate
Let’s get back to the basics – What’s an offer anyway? Recently, a Home Buyer believed we were under contract with a home just because we had submitted an offer and went back and forth with counter offers. That’s not how it works. Let me explain.
An offer is simply that, an offer to purchase. It’s a promise by one party (usually the Buyer) to act or perform (buy the home) in a specified manner (purchase price, closing date, etc.) provided the other party (usually the Seller) acts or performs in the manner requested (sells the home).
An offer is an intention to enter into a contract. That means if you don’t intend to enter into a legally binding contract, don’t make the offer.
If the Seller and Buyer agree to the terms of the offer, the offer is accepted.
It starts like this:
- The Buyer sees the home they love.
- The Buyer’s Agent writes up offer and Buyer signs it indicating they want to purchase the home.
- The Buyer’s Agent sends it to Listing Agent.
- The Listing Agent submits it to seller. In Florida, Listing Agent is required by law to submit all offers to Seller, even if the Seller doesn’t want it.
- The Seller either accepts, rejects or counter offers.
- If they accept, then you are under contract per the terms of the agreement.
- If they reject, the Buyer is back to square one and can either resubmit a new offer or move on to another home.
- If the Seller counters, it means they want to work with the Buyer, but on terms other than what was originally submitted on the Offer.
- Sometimes the Seller will counter offer to the Buyer and the Buyer counter offers back to the Seller and it goes back and forth but an agreement is not met. At this point, there is no contract.
- If the Seller and Buyer agree on the terms of the offer and the counter offer or offers, then there is a contract. All parties must sign off to have a binding agreement or executed contract.
Real Estate contracts must be definite and certain, with all terms in writing.
I hope that clarifies the offer part of the real estate maze.
If you are thinking of buying or selling a home on Anna Maria Island or the surrounding areas, contact local experts and Realtors Jen & Mark Bowman, Keller Williams Realty at 941-840-0117.