Updated August 03, 2022
A real estate purchase counter-offer is a response made by either a buyer or seller during negotiations for the sale of a property. It is common to give the other party between 48 to 72 hours to agree to the terms stated in the counter-offer. If the other party doesn’t agree or respond, the agreement and all prior offers become void and non-binding.
Table of Contents |
How to Make a Counter-Offer (3 steps)
Step 1 – Receive the Offer
Most commonly, the seller will be making a counter to the buyer’s offer. The seller will reference the purchase agreement by entering its date.
Step 2 – Write the Counter-Offer
The seller will make the counter-offer and include terms they would like to include. Once complete, the seller will sign and attach to the original purchase agreement.
Step 3 – Wait for Acceptance
After sending, the buyer will have until the end of the expiration period to accept its terms. After the buyer signs, the counter-offer becomes legally binding after the seller has been made aware the buyer has accepted the terms.
Sample
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Video
How to Write
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Section I
(1) Counter Offer Effective Date. Present the effective date when the original offer for the property was made.
(2) Buyer. The Buyer of the real estate must be identified with a record of his or her complete name.
(3) Seller. Report the full name of the Seller of this real estate.
(4) Property Description. The property being discussed should be defined with its physical address, the type of structure (if any) on the property, and (if available) its legal description.
Section II. Terms
(5) Counter Offer. Present the formal counter-offer being made through this agreement. This should be a complete record of any changes wanted in the pricing, payment schedule, conditions, and terms the Seller wishes the Buyer to agree to.
(6) Expiration. Naturally, the counter-offer will need to be subject to a time limit so that a response can be attained within a reasonable period of time. For this, document the final time and date that the Seller will accept a formal response to this counter-offer.
(7) Seller’s Signature. The Seller should carefully review the counter-offer being made. Once this document is signed it will be considered a legitimate answer from the Seller to the Buyer’s original offer.
(8) Seller’s Printed Name.
(9) Date. The Seller’s signature date should be delivered to this document when he or she signs it.
Buyer Response
(10) Accepts. This paperwork allows for a quick response from the Buyer. For instance, if the Buyer accepts the counter-offer made through the above document, then he or she will need to mark the “Accepts” checkbox.
(11) Rejects. If the Buyer does not intend to accept the conditions and terms of the counter-offer, then the “Rejects” checkbox should be selected.
(12) Partially Accepts. The Buyer may wish to accept certain points of the Seller’s counter-offer but intends to reject other conditions or terms. If so, then the “Partially Accepts” checkbox should be selected.
(13) Expiration To Response. If the Buyer responds by altering the counter-offer made by the Seller, then a deadline to the Seller’s response should be imposed. Furnish the last time and date when the Seller may accept or reject the counter-offer to keep the current negotiations active.
(14) Terms And Conditions Of Response. The Buyer should explain which aspects of the Seller’s counter-offer are acceptable and which are not in the space provided.
(15) Buyer Signature. The Real Estate Buyer will be expected to respond to the counter-offer by signing his or her name.
(16) Signature Date. After signing his or her name, the Real Estate Buyer must document the calendar date the signature was provided.
(17) Date. The Buyer’s response must be shown as given before the Seller’s expiration date. To this end, the Buyer must report when he signed this paperwork with the date.
