Counter Offer Question

Daisy
Home Buyer
Bakersfield, CA

My husband and I made an offer on a short sale. Our offer was accepted by the seller and sent to the bank. Four weeks later the bank accepted our offer and approved the short sale. Two days after that the listing agent sent our agent a counter offer which stipulates what the sellers are taking from the house. Can you counter once the offer was already accepted by the seller and the bank? If so, can we counter their counter also?

Answers (12)
Don Tepper
Agent
Fairfax, VA

As the other answers have made clear, a counter offer was not appropriate--not even possible--after the sellers accepted it.

Also, be very careful. The bank won't permit the sellers to receive any proceeds from the sale. Maybe what they're trying to do is have you "buy back" the items they say they're taking. You'd be paying them money outside of the contractual documents--and that's something you definitely do not want to do.

And it's peculiar that the sellers (and perhaps their agent) don't realize that the sellers have more to lose than you. If your deal falls through, they may very well end up in foreclosure.

Have your agent talk to the seller's agent and straighten the whole thing out. You have a ratified contract that's been approved by the bank. End of story.

Sun Sep 13 2009, 17:37
Daisy
Home Buyer
Bakersfield, CA

Thanks so much for all your help April and everyone else who posted answers to this question. I wanted some insight before I speak with my agent. We've been looking since December 2008 and we finally found the perfect house for us so we don't want to lose it, so thanks again!

Sun Sep 13 2009, 16:42
April Tavares,...
Agent
Saratoga, CA

Hi Daisy,

It is hard for me to judge as I don't have alll the contracts/paperwork in front of me or the timelines. I also do not what has and hasn't been said. You really need to discuss with your agent. The paragraph that I referenced is in the offer to purchase and the sellers must sign that offer and you must acknowledge receipt of their signed offer for the contract to become bindng. Since this is a short sale, the bank must confirm as well. You should refer to the offer that has all those signatures and initials on them.

Yes, typical contract procedure would have been if you submitted the offer and did not alter the standard language found in paragraph 8 in the contract and the seller wanted to, the seller should accept your original offer and include a counteroffer form indicating any changes they wanted to see in your original offer.

A counter offer form is not typically used after everyone has accepted. However, in some circumstances the buyer and seller will agree to changes in the original agreement. These changes can be anything. Those changes would be stated and listed in an Addendum to the contract and need to be agreed upon by both the seller and buyer. Double check the form sent to you asking for the ceiling fans and shutters.

Have you asked your agent to just tell them you do not want them taking those items? There is so much we don't know in this situation. Speak with your agent, he/she is there to help you in situations just like this. Each transaction is unique. I always tell my clients there is likely to be "turbulence" in every transaction, but don't be alarmed. My job is to get them through the rough spots and help them close the deal.

I hope these posts help you in your discussion with your agent.
April Tavares, GRI, ASP
Realtor , DRE License #01742179

Sun Sep 13 2009, 11:14
Daisy
Home Buyer
Bakersfield, CA

Thanks April, I checked our contract and no where in those sections does it say anything about them taking certain items from the house, but I havn't seen the contract that was signed by the sellers yet, this is just a copy of the offer we made to them. Should I look at the signed contract by both parties? Even so, shouldn't they have countered those items before accepting our offer?

Sat Sep 12 2009, 21:47
April Tavares,...
Agent
Saratoga, CA

Hi Daisy,

If you used the CAR (California Association of Realtors) purchase agreement when making your offer, check paragraph 8 B and C. This paragraph references those items included and excluded from the sale. Paragraph 8 B (2) specifically references ceiling fans and shutters as items that would be included in the sale.

If you did use this contract, you should point this out to your realtor and have them go back and speak with the sellers on your behalf.

I hope that helps,
April Tavares, GRI, ASP
Realtor, DRE License #01742179

Sat Sep 12 2009, 15:00
Daisy
Home Buyer
Bakersfield, CA

So, where would it be in writing? Would it have to be in the contract?

Sat Sep 12 2009, 12:19
Anne Mosnier Ke...
Broker
Oakland, CA

A counter offer is not to be used at this point-you have a contract accepted by the sellers and the short sale component of it subsequently approved by the lender. If the sellers want these items, you'd have to agree, and then an addendum would be used to document it and make it part of the contract.
Good luck!

Sat Sep 12 2009, 07:57
Rebecca Chambli...
Agent
Palos Verdes Estates,...

Those things should have been excluded in the MLS if the buyer was planning to take them. Unfortunately unless it is in writing, those things should stay with the house if they are attatched.

I think you need to work with your agent to decide how important it is to you if the Seller takes these things. Would you back out of the sale (which you would have a right to because the property would be in a different condition than what you agreed to purchase.) If so, are they at risk of losing their home to the bank? Are there other buyers who won't care about shutters and ceiling fans because they are getting such a great deal?

Sat Sep 12 2009, 07:54
Daisy
Home Buyer
Bakersfield, CA

They said they are taking the interior shutters and ceiling fans.

Fri Sep 11 2009, 22:52
Cindi Hagley, W...
Broker
San Ramon, CA

What kind of items are they trying to take? Appliances? The lenders may be interested in knowing this since these items were most likely financed as part of the deal and could be intrepreted as theft.

On the other hand, turn the sellers in and you will most likely lose the deal.

Fri Sep 11 2009, 22:18
Fred Griffin
Broker
Florida

The Contract is between the Buyer and the Seller.

The Bank is not a Party to the Contract; the Buyer and Seller are the Parties to the Contract.


The Seller accepts the offer. The offer is then Contingent or Conditioned upon APPROVAL by the Bank.


The Bank / Lender holds all the marbles... read the fine print in their "Approval"... most of their documents have cancellation clauses, re-neg clauses, and other weasel clauses that allow them to cancel their "Approval" if a higher Offer comes along.

Talk with your agent for clarification. Read every word on both sides of every page of the Contract, and read every word of the Bank's approval document.


See a Real Estate Attorney for Legal Advice.


---------------------
Best wishes,
Fred Griffin
---------------------

Fri Sep 11 2009, 21:53
Rebecca Chambli...
Agent
Palos Verdes Estates,...
FIRST ANSWER

Once there is a fully executed contract (signed by all parties) you can not renegotiate. Unless there was an addendum allowing the Sellers to counter after the bank accepted.

Curious to know what the Sellers would like to take.

Fri Sep 11 2009, 21:31

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