You Bought A House, or Did You?
Although this market has and continues to have its challenges, we still occasionally see some "hot " properties. What's a hot property? A home in good condition in a nice location and well priced.
These homes will typically get a lot of showings and there will likely be multiple bids. Yes, even in this market! Many buyers and sellers are motivated by the tax credit and are putting their "best foot forward", viewing this as a great time to buy or sell.
So you find a great home and make a WRITTEN offer. Your agent then gets that offer to the listing agent. This could be by e-mail, fax, or even hand delivered.
Your agent receives an e-mail counteroffer from the listing agent. You are happy with the terms, tell your agent that you accept and instruct your agent to notify the listing agent that you accept. Your agent does so.
You are thrilled because you now believe you have purchased a home.
But have you??
Here's my answer. Maybe. Maybe not.
In order for an offer to be fully accepted, it must be signed by all parties with initials by any material change and delivered to all parties. Delivery can be through the agents for the buyer and the seller. Until and unless this has been done, there may not be a contract.
It is entirely possible that even though you have a verbal or e-mail acceptance, another offer may come in. Unless the contract has been signed, initialed, and delivered to the seller, the listing agent has a duty to let the seller know that another contract has been submitted. You may then be in a multiple offer situation.
So when a buyer says to me "Barb, now that we have negotiated an offer, the seller can't sell it to anyone else can they?" My response is, until the contract is signed, initialed, dated, and returned to me, the seller may very well sell it to someone else.
This can and does happen, and buyers get very angry when it does. So if you see a home that you "just love", and you are ready, willing, and able, know that time may be of the essence. Make yourself available to meet with your agent to sign the necessary papers, and to initial any agreed upon changes in a timely manner.
Laws may vary from state to state so if you have questions about your contract and what is considered legally binding, consult a real estate attorney.
If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex and is deemed reliable but not guaranteed.
Good information Barb
Barb, this does happen more often than not, especially for properties which are properly priced and in great condition. It is best for buyers to be aware of the possibility of a home being sold out from under them.
These are good pointers, Barb. It's always better to be safe than sorry...
Thanks Corey
William, I try to always tell them that it could happen so there are no surprises
William, So true. The frustrating thing for the buyer is that they have no control over another buyer writing an offer.
Barb, good information we need to make clear to buyers.
I think buyers need this information...they are shocked when they get into multiple offers after being told what a buyer's market this is!!!
Barb, I believe a lot of people don't know this and are shocked that they're still having showings of "their" house. I'm sure you educated more than a few people with this article.
Unforunately, Barb, it happens quite a bit! Never assume anything until it is ALL in writing, signed, and delivered! Great advice for the people in your area! (any area)
Carole, I hope so. I find if the buyers are aware of what could potentially happen, they may still get mad but will be less likely to blame their agent.
Thanks Leesa!
Barb, you're right, it's not an agreement until both sides have signed and agreed to the same thing.
Brian, So true, and ANYTHING can happen in between!