Home Buying in Anaheim>Question Details

kahome, Home Buyer in Irvine, CA

Can the Sellers back out after a No Multiple Counter Offers is signed?

Asked by kahome, Irvine, CA Mon Feb 10, 2014

Home is listed for $689K. I had put in the offer for $675K. We got a CO1 for $695K (6K more than the listed price) that is valid for 3 days. We sent the CO2 with an amount of $691 and had the offer set to expire at 6pm the next day.

Since we have not heard anything from them up until 4pm, I had signed and sent them CO1 for $695K (their revised asking price) and sent it to them at 4.30pm. The CO1 clearly says on the top “May not be used for Multiple Counter Offers”.

Now they are trying to back out of it and saying they just got other offers. Can these brokers do this? I guess they used my offer to get better offers and disclosed to get a higher price although it says it Cannot be used for Multiple Counter offers.

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Answers

13
"Can not be used for Multiple COUNTER OFFERS" What were you thinking? Who planted the idea in your brain this was worth the effort to write? -------------- When you reopen negotiations, anything can happen. That is what you did, and your offer got kicked to the curb. ------------ Can these brokers do this? Professionals work to advance the best interests of their client. If you really want the house, stop being clever and put in an strong, clean offer. You have already tainted the environment so you MAY get one more swing at the ball. --------- Your best hope is the other buyer is a gamer also. They also may do something stupid. You may want to be prepared by negotiating a back up offer.
1 vote Thank Flag Link Tue Feb 11, 2014
Once you sent CO2, CO1 is no longer valid, and they do not have to accept it. By not signing CO1 before issuing CO2, you never had a completed agreement. Therefore, since they failed to accept CO2, and with CO1 off the table, they are free to entertain other offers.
I am sorry that you found yourself in this situation.

Nicole Fedorchek, Realtor
Tarbell, Realtors
714-914-5097
realtornicolef@gmail.com
1 vote Thank Flag Link Tue Feb 11, 2014
As stated below, Counter offer two negates any previous contract. They are not obligated to your offer.
1 vote Thank Flag Link Tue Feb 11, 2014
Once you sent Counter Offer #2 back to them, you are basically saying that you are rejecting their first Counter Offer #1, meaning that they can now back out or accept other offers.
1 vote Thank Flag Link Tue Feb 11, 2014
That is correct if you needed to hear it from another agent.
1 vote Thank Flag Link Tue Feb 11, 2014
The minute you sent counter offer no 2 counter offer 1 was was rejected. Seller is not bound by your co 1. Adding cannot be used for multiple counters offers is useless language.
1 vote Thank Flag Link Tue Feb 11, 2014
CO2 cancels out CO1. You also state that CO2 was set to expire at 6:PM, and then you sent CO1 at 4:00PM.


In the future try and make your best a final offer right out the gate. Offering less than list price (unless you are paying CASH) is a big gamble in today's market.

Also be careful of the documents you sign, and be mindful of the terms and timelines.

I wish you the very best, but based on the info you provided, I must conclude the seller has done nothing wrong.

Kawain Payne, Realtor
0 votes Thank Flag Link Sat Feb 15, 2014
In real estate sector things work in different way. Once you sent CO2, CO1 is no longer valid, and they do not have to accept it. By not signing CO1 before issuing CO2, you never had a completed agreement. Therefore, since they failed to accept CO2, and with CO1 off the table, they are free to entertain other offers.
0 votes Thank Flag Link Tue Feb 11, 2014
Good luck with that. Hope you were able to get it resolved.

Rochelle Chacon
Keller Williams Realty
949 533-1262
0 votes Thank Flag Link Tue Feb 11, 2014
As soon as you send a new counter offer in voids any and all previous offers. So, once you send the CO2 it makes CO1 useless. Email me if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Tue Feb 11, 2014
I suggest you ask the agent helping you and if his/her answer is different than the answers you got here, get another agent that knows what is doing! A lot of buyers like to play games and save money or think that know more than the professional Realtor. Should use common sense and ask the agent to prepare for you a market update for the subject property which will help you make an educated decision before submitting the offer.
0 votes Thank Flag Link Tue Feb 11, 2014
Until the sellers agree to your signed counter, they can back out. It's all negotiable until the very last dot on the contract!
0 votes Thank Flag Link Tue Feb 11, 2014
This is a painful lesson that new buyers should learn from: in the current market (low inventory & rising prices), if you really like a home, don't quibble over an amount ($4k is less than 1% of the original counter) that you can afford & one that you would be willing to pay if you knew it would cost you the home. On two other notes: they may not have necessarily used your offer to get a higher price, their original counter suggests that they were already getting a lot of activity and because anything can happen, I suggest that you let them know that if the current buyer doesn't perform that you are still interested.
0 votes Thank Flag Link Tue Feb 11, 2014
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