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I'm not sure if I'm posting in the correct forum, so please forgive me if I am.
I place an offer on a house (asking price) and the next day received a Multiple Counter Offer on a C.A.R. form.
The first paragraph states: Terms: The terms and conditions of the above referenced document (my offer) are accepted subject to the following:
And the there is "C. OTHER TERMS: Addendum 1 to be part of RPA. 2. Due to multiple offers, buyer to submit highest and best for both terms and conditions on separate addendum. 3. Item 4B2 to be reviewed by seller"
My question is this: Does this counter offer negate my original offer??
Normally, I'd say that my offer of asking price was my highest and best, but I've since read reviews of the realty company associated with this property and they are rated 1 out of 5 stars on Yelp. I believe them to be using psychological tactics to try to increase the price of the house. I could be wrong.
The reason I ask is that I told my agent that I'm not planning on signing their multiple counter offer or any kind of addendum. She's telling me that whether I sign or not, my original offer will stand. I've searched for answers on Google and this forum and all I really come up with is a lot of gripes about the "highest and best" strategy.
At this point, am I entitled to just not do anything and walk away from this altogether? Or should I just tell my agent to withdraw my offer??
I'm not 100% sure I understand your question. You appear to be asking what happens if you do nothing.
You need to read the fine print and consult with your agent. It may say if they don't hear back from you and don't get another offer by xx date and time, they will sign your offer. It may say if they don't hear back from you, they will consider your offer as it stands against any other offers they have. It may say if they don't hear back from you, they throw out your offer. My best guess is the 2nd one there, that if you do nothing, they assume your original offer is your highest and best, but I have seen the 3rd one sometimes too, that they got so many offers, they only consider people who sign their highest and best form, even if it just says something like "original offer is highest and best".
Be aware, many areas really are getting multiple offers on houses in the first few hours due to a shortage of inventory, so it very likely isn't a mindgame, but an actual multiple offer situation. In my area, many houses are selling for full price or even a bit over full price due to bidding wars.
I'm curious, where would I look for the fine print?? In my original offer, or on the counteroffer? I looked through both and I see no fine print that states anything about what happens if I don't respond.
My question put differently, at this point, can I tell my agent to withdraw my offer altogether?
I'm curious, where would I look for the fine print?? In my original offer, or on the counteroffer? I looked through both and I see no fine print that states anything about what happens if I don't respond.
My question put differently, at this point, can I tell my agent to withdraw my offer altogether?
Thanks,
Kyle
Should be on the multiple counter offer form. For example, in my state, the Multiple Counter Offer form says "Unless Acceptance of this Multiple Counter Offer is signed by Buyer and a signed copy delivered in person or by mail, facsimile, or electronic transmission and received by Seller or Seller's Agent by (date) (time), this multiple counter offer shall be considered expired." Which is actually a little bit vague, as it doesn't really clarify what happens when the counter offer expires. In my opinion, that would mean that they could still choose to sign your original offer as long as it was within the original time frame allotted in the original contract. But likely if the time frame runs out on the counter, it will also be out on the original offer, so both would be null and void.
But yes, unless your contract says something really strange, you can have your agent rescind (withdraw) your offer as long as the seller hasn't accepted it. Alternately, they could just reject the multiple counter offer.
If you are insulted for some reason by the highest and best counter, you could alternately come back on the counter with some lower price (say you originally offered $200k for the house, and they asked for a highest and best, come back and say you are now only willing to pay $170k). Or just rescind your offer and walk away.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Item 4.B.2 has to do with government retrofit standards, not sure what part of your offer triggered that response on the sellers part.
If your full price offer is the best you want to do, your agent can just verbally inform the other agent that that's your best shot.
Quote:
I believe them to be using psychological tactics to try to increase the price of the house. I could be wrong.
You are likely wrong on this point.
If you like the house well enough to have made your original offer, I'd leave your offer in play. Don't be surprised if you come in second place. You can withdraw your offer at any time prior to acceptance by the seller. This can be verbal BTW.
My question put differently, at this point, can I tell my agent to withdraw my offer altogether?
Yes, if you don't want the house and if there is no signed contract you can simply withdraw your offer.
If you still wish to try to buy the house you can either have your agent inform them that your original offer IS your highest and best offer...or you could write up another offer.
Item 4.B.2 has to do with government retrofit standards, not sure what part of your offer triggered that response on the sellers part.
Item 4.B.2. in my offer stated "Seller shall pay the cast of compliance with any minimum mandatory Government retrofit standards, inspections and reports if required as a condition of closing escrow under any law."
I said heck with it and had my agent write up a CAR, Form CC to withdraw my offer.
Thank you all for the responses. You've definitely been really helpful!
Ok, now I'm actually really confused. I sent an e-mail to my agent earlier yesterday stating:
"Good afternoon ***,
I am asking that you please draft a letter thanking the seller for allowing me to visit the property and taking the time to review my offer, but I am hereby withdrawing my offer for the house on <address> and would like to cease negotiations from this point on.
I ask that this typed letter be time stamped as well.
Just let me know what - if anything - I am required to sign.
Thank you,
Kyle"
She came back with a CAR Form CC which is titled "Cancellation of Contract, Release of Deposit and Joint Escrow Instructions". Why would my agent use this form. My original offer was never signed by the seller, so doesn't that mean no contract exists?
This whole situation is really frustrating and stressful, mostly because I've received some conflicting information. I spoke with a different realtor yesterday to ask about this multiple counter offer thing and they stated that just due to the fact that the seller sent a counter offer asking for my "highest and best" that my original offer is no longer even on the table.
But then after I told my agent that I'm not going to sign/return their counteroffer or provide a highest and best, she stated that it doesn't matter and the seller can then just basically assume my original offer was my highest and best...and, if they deem it the best offer overall, could go back and sign my original offer.
I then posed that to the first realtor and they stated, "It sounds to me like your agent doesn't understand real estate law. At this point, you're required to do nothing and your original offer no longer exists."
I'm just really confused right now and I want to ensure that I'm going the right direction in order to be sure I'm no longer bound to any type of agreement.
The form she sent you is the wrong form. Texas actually did away with their Withdrawal of Offer form, so now it's just an email sent over to withdraw an offer. Maybe she's never had to withdrawal an offer and didn't realize what form to use or not use.
A contract is also a "meeting of the minds." Yes, the sellers could sign your original offer to execute it, but if there isn't a meeting of the minds as you have proof of wanting to withdrawal it, there legally is no contract.
Merely to avoid confusion, I would suggest that you send an email to both your agent and their agent that you have withdrawn your offer.
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