Time is a buyer’s worst enemy
Ask Phyllis is a blog series of frequently asked real estate questions. Have a question about real estate? Email us here
Dear Phyllis,
I haven’t seen you address this: does accepting a seller’s counteroffer create a binding contract? As soon as this home hit the market, my agent scheduled a showing. We loved the home, and my agent submitted an offer that evening.
The next day, the listing agent emailed a counteroffer. Because this was a divorce situation, attorneys were involved. The listing agent said the sellers would not sign until we first signed the counteroffer accepting their changes. He also explained that the sellers did not want to pay their attorneys to review the counteroffer unless we agreed.
We signed, and my agent returned it to the listing agent. An hour later, the listing agent said the seller received another offer, and now they wanted to issue a multiple counteroffer to both of us. We were so upset we passed on the house. It seems like this should be a violation of the code of ethics or something. I believe we had a verbal real estate contract. It seems that time is a buyer’s worst enemy; what are your thoughts? Leo
Dear Leo,
Buying a home creates an emotional rollercoaster, and I’m sorry this happened to you. You learned an important lesson: during negotiations, time works against buyers. In this case, the sellers had not signed your counteroffer, and verbal real estate agreements do not create a binding contract. A verbal real estate contract is not enforceable.
I understand how frustrating this situation feels, and I also understand why buyers sometimes suspect something when another offer suddenly appears. I often see homes sit on the market for weeks or months, then receive multiple offers at the same time.
Leo, you did everything right. You viewed the home as soon as it hit the market. You submitted your offer quickly and responded immediately to the seller’s counteroffer. If the sellers had signed your counteroffer, the outcome would likely have been different.
Don’t give up. Another home is out there for you, and you may find one that fits you even better.
Related Post: Endless Counter Offers
