A seller received two offers at about the same time. He wants to counter both. May he do so?
It's not a good idea to do so because the seller potentially could be bound to sell the property to two different purchasers if both were to accept the seller’s counteroffer. Instead, the seller could reject both offers and invite the prospects to submit better offers using the Seller’s Invitation to Buyer to Submit New Offer form (TXR 1926) or the seller could make a counteroffer to only one prospect. When a party makes an offer or counteroffer, that party gives to the other party the power of acceptance to create a binding contract.
A client of mine did exactly that, he invited the buyer’s to submit new offers. He then had me write in the email to all agents the terms that were most ideal to him. It worked out great. Some agents were upset but my client got the ideal offer and was extremely happy.
I love this form! I use it all the time
Great way to stay out of trouble and keep it clean.
Many times rejecting both offers and giving the invitation to re-bid, backfires. Buyers don’t want to enter a bidding war, so this gives them the opportunity to back out. I would advise my client to use your second suggestion, to respond to the best offer and if that falls through, you can respond to the second offer. Do so in a timely manner and you won’t hurt anyone’s feelings.
You wrote “When a party makes an offer or counteroffer, that party gives to the other party the power of acceptance to create a binding contract.” I’d like to add “and unless there is a ‘termination option’ the parties are bound to their promises.” So, why can’t a seller make a “counter-offer” with a termination option when buyers’ “offers” can easily have a termination option? And if both counter-offers are accepted — terminate the one less desirable.
How should seller reject an offer with no counteroffer
Where can I obtain a Counter Offer Form?
Please advise!