Real Estate Contract 101 | Responding to an Offer

Real Estate Contract 101 | Responding to an Offer

Home buyers and sellers in Val Vista Lakes Gilbert AZ should understand the real estate Purchase Contract when submitting or receiving offers for real estate.

In any contract for real estate, Time is of the Essence.

Any action to be completed by a certain date is important to comply with, or risk losing the deal.

A Val Vista Lakes home Seller or Buyer, should understand the Purchase Contract; and know if your real estate agent is assisting you in following the time lines.

TERMS OF ACCEPTANCE, Section 8p

• In this section Buyer submits a deadline time for offer acceptance. 
  
  
• Buyer may withdraw offer any time prior to deadline if Seller hasn't accepted.
  
  
• If Seller doesn't accept, or counter offer prior to deadline, the offer is VOID.
  
  
• By mutual written agreement, Buyer and Seller may extend deadline. Don't count on it happening.
  
  

COUNTER OFFER Section 9c

• Seller may counter any terms of the contract through Counter Offer form.
  
  
• Seller signs Line 388 accepting contract terms not countered.
  
  
• Seller lists countered items in Counter Offer prior to expiration of deadline.

It is important for Seller to respond prior to deadline.

LATE RESPONSE CONSEQUENCE

When Seller responds late, they risk losing Buyer.

A short sale was listed slightly below market. Apparently agent hoped for multiple offers.

• My client submitted FULL PRICE offer Thursday with Friday 5pm deadline
  
  
• Deadline passed - no communication from Sellers agent.
  
  
• Sunday, Sellers agent contacted me stating "over the weekend" they received 5 offers and request our Highest and Best."
  
  
• Agent stated the highest offer number!!!
  
  
• I informed the agent that our offer expired Friday 5pm BEFORE he received other offers, and our offer is off the table.

We don't know if Seller saw our contract because there was no Seller signature, just an agents note.

The agent violated the Realtor Code of Ethics by not treating my client with Honesty and Fair Dealing; and by stating the amount of someone's offer. We submitted a full price offer with a deadline of Friday 5pm, and they did not receive any other offers until after our deadline passed. Then they asked us to effectively bid against ourselves.

Sellers agent risked damaging Seller by either not presenting our offer, or recommending they wait until the weekend, hoping for other offers, and hoping we would extend our deadline.

PROBLEM FOR SELLER

Seller was at risk because a higher offer could be submitted by a weak buyer who, at the last minute, may not get financing. If sale falls through at the last minute, lender may foreclose, damaging Seller more than a short sale.

My buyer was a strong buyer with excellent credit, over 800 FICO

On Monday we offered on another house. It was accepted.

• Know the strategy your agent is using.
  
  
•  If the strategy seems to not treat other agents and Buyers honestly, you must ask the question:
           If your agent is dishonest with others, will s/he be dishonest with you ?

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