A minor correction: real estate agents can, in fact, write an attorney approved contract in New York, just as buyers or sellers may operate without an attorney, if they so choose.
The offer letter that you sent out is meaningless without a signed contract, as stated, so you should have no problem correcting your mistake and proceeding with the new offer. I would, however, put all of this in writing, including the error and recission, as you will likely have a lawyer doing the paperwork in the absence of an agent willing to undergo this task.

thanks. I believe Joanna is right here. I contacted my friend who is a real estate agent and he said that at this point it's perfectly ok to rescind the offer and replace it with a lower bid. an email of accepted offer isn't binding. although as many of you pointed out, this may mean that it doens't put me in anyone's good graces, and i have no chance of an acceptance of an offer. apparently since no attorney's are yet in discussion, the situation is still negotiable and navigable.

since this is my first house and buying is such a big decision for me - i would feel better knowing that i made the right offer - as a starting point for discussion. And if the agent or seller chooses to not use that as a starting point for negotiation - well then I am ok with that knowing that at least i didn't just bid full asking in this market. Ultimately if it's as popular as the selling agent says it is, then they will likely pass and talk to other buyers. And if it's not, then hopefully they will entertain talking to me.

Thanks to everyone for their insights!

Cameron and Don,
Agents cannot write real estate contracts in New York, it is an attorney state, everything is subject to attorney review. I stand by what I said.

Carroll,
It's normal here for the seller's agents to continue to show the property right up to Closing, in fact it's required unless the seller explicitly asks not to continue showing. The seller is looking for a back-up offer in case yours doesn't go through for whatever reason, and they are required to disclose your accepted offer to other prospective purchasers, so don't read anything sinister into it. However, having withdrawn your current offer, if they get a matching or better offer from one of the other people, they may well decide to go with that instead, so you need to try and get this sorted out as soon as possible. The seller's agent may not represent you, but they still owe you honest and fair dealing.

Carroll,

After loweing the offer I wouldn't give you much of a chance for success. The sellers are now on an emotional rollercoaster and you are the cause, while this is what it is. The sellers will most likely project their grief onto you and therefore not be likely to want to work with you on an emotional level. I would recommend finding another property or detaching from the outcome on this one.

Cameron Piper

Check with a lawyer.

I'm not a lawyer, so this isn't legal advice. However....

I'm not as comfortable with the reassuring answers you've been provided. You say you made an offer "that was accepted." If that means that you put an offer in writing, and the seller accepted in writing, then you have a contract. Except in cases (consumer protection laws) that permit recession of a contract within a certain period of time under certain conditions, if you make an offer (in real estate, it must be written), and if there's written acceptance, then you've got a valid contract. Or, more precisely, the seller has a valid contract.

As is suggested below, you can always exercise a contingency that may have been written into the contract. However, because you didn't have an agent, it's possible that some of the contingencies that the agent would have put in weren't included by the listing agent. Hindsight's 20-20, of course, but that's just another reason you should have had an agent.

Don't be comforted by the fact that they're still showing the house. If you mean that there's an open house today, Sunday, that ad had to be placed in the newspaper on Thursday or Friday...before your offer was received. Further, it is not only permissible but good practice for a listing agent to continue showing a property even after offers have been received, especially if there are contingencies in the contract.

As for your question: "if someone made an offer that was accepted, and then before any legal documents were drawn up, decided to lower their offer - how would that work? My situation could certainly be interpreted that way." That's for a lawyer to answer. But I could make an offer written on the back of an envelope in crayon. And if the seller accepted the offer, that's legally binding.

Anyhow, consult with a lawyer as soon as possible.

Good luck.

Thanks for everyone's feedback. This just happened 2 days ago and while i provided my lawyer's information, no details have been drafted. I don' t have an agent, only the seller does, so hopefully this doesn't mess things up. ultimately i see they are still showing the house - so to me, that means that they are still hoping to get another offer in - which makes me wonder if they are starting a bidding war. Which wouldn't surprise me based on the personality/sense I got from the seller's agent. As an aside, I'm just curious - if someone made an offer that was accepted, and then before any legal documents were drawn up, decided to lower their offer - how would that work? My situation could certainly be interpreted that way.

Did you hand any money over? Based on what you are saying, you didn't and you are not in any legally binding situation yet, so don't worry, that's exactly why the offer letter goes out, so that everybody is on the same page and any errors and omissions can be corrected before it goes to contract if something was misunderstood. Everything is subject to your attorney review, but call your agent immediately, and ask them to express sincere apologies on your behalf, and to explain that it was a mistake, and the real number you are offering is X, not Y. Would this still be acceptable. If the other side has your attorney details already, you will also need to advise your attorney not to do any work on it yet, because you need to make sure the real offer is acceptable first, otherwise you could get an attorney bill. A good agent will smooth it over with an apology, and explain it as a misunderstanding. Good Luck with your purchase.

Just have your Realtor rescind the offer. Speak to your real estate attorney to determine the legal consequences, if any. Based on the information you've given, in NY, you don't have a fully-executed contract.

Carroll,

Call your agent right away. Ask them if the offer has been signed yet and been received back. If it hasn't have your agent recind the offer immediately. If it has been signed and delivered you most likely have a binding contract. The only way out of those legally is to exercise a contingency in the purchase.

Failing any contingencies you may just want to have your agent call the listing agent and explain the situation. Ask the seller if they want to pursue specific performance or if they would rather let you out of the transaction now without a fight. You might offer your deposit/earnest money as a token of remorse. I hope that helps.

Cameron Piper