What is a COUNTER OFFER?

One of the things you are likely to encounter in this market after you make your offer is a COUNTER OFFER.

A COUNTER OFFER is a response from the seller, in writing (on a California Counter offer Form) where the seller proposes a change in your offer – it could be a different PURCHASE PRICE (most commonly), or a different CLOSING DATE.

But there may be other terms and conditions that the seller may propose changing – inspection time frames, who the title and escrow will be, who pays for the termite inspection, an increase in the deposit, and so on.

Keep in mind that terms and conditions proposed in your offer remain in effect if they are not addressed in the counter. As in the original offer that the seller counters, you have the right as the buyer to ACCEPT the new terms and conditions, PROPOSE other terms and conditions, or even end the negotiations right there if you want. Your COUNTER OFFER back to the seller must be in writing.

The process continues until both parties agree on all the terms and conditions and all the offer documents and counter offer forms are signed, or you agree to negotiate no further.

Keep in mind that a verbal counter really means nothing – terms and conditions must be in writing and signed by both parties to the contract.

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