Does a Seller Have to Accept the Highest Offer on a Home? - Real Estate in Aspen, CO Homes for Sale & Properties (2024)

FAQs

Does a Seller Have to Accept the Highest Offer on a Home? - Real Estate in Aspen, CO Homes for Sale & Properties? ›

Home sellers are free to reject or counter even a contingency-free, full-price offer, and aren't bound to any terms until they sign a written real estate purchase agreement.

One common misconception is that sellers always pick the highest-priced offer they receive because they do not know any better or have no other options. In reality, there are a variety of reasons why sellers might choose not to accept the highest offer they receive.

Closing Date

If the buyer needs to move quickly or has a specific timeline in mind, a higher bid with a longer closing period or no flexibility might look very unappealing. A buyer with secure financing that is flexible in their closing timeline might have the upper hand.

In California, home sellers are not obligated to accept a full-price offer on their home even if the amount is greater than the full asking price.

There could be some major underlying reasons why this happened. Still, chances are slim that a seller will change their mind unless a new offer is presented. There are really two choices left when dealing with the aftermath of having a home offer rejected: you can make another offer or you can decide to walk away.

A low offer may be upsetting to the sellers, but if you and your real estate agent present the offer along with an expression of your appreciation for the property, it's more likely to be accepted than a low offer accompanied by a half-complete contract or an insult about the property's condition.

The bid price—the price a buyer is willing to pay—is the first price in the pair. The ask price—or the price a seller is willing to accept—is the second.

It's understandable that many sellers—and often their real estate agents—believe they must accept a perfect offer. After all, aren't the buyers giving the sellers exactly what their listing asked for? However, there are currently no U.S. laws that require this.

When sellers receive more than one offer, they must carefully review them with their agent and choose the one that works best for them — and that does not always mean the offer for the most money. While some sort of response is typical, there is nothing illegal or unethical if a seller does not respond.

The amount you may want to reduce your home's asking price depends on many factors, including the median price in your area, what comparable homes nearby are selling for and the length of time the home has been on the market. According to a Zillow study, the average price cut is 2.9 percent of the list price.

Do sellers ever accept the first offer? ›

“Receiving an early offer indicates strong interest in the property,” Napolitano says. “If the first offer received is at or above the asking price, it may be tempting for a seller to accept it, especially if the offer aligns with their expectations and the current market conditions.”

Can a home seller change the price after a contract is signed? No. Typically, when a seller wants to back out of a contract, it's because the house appraised much higher than the offer and the seller wants a do-over. Unfortunately, at that point, you'd be legally obligated to go through with the under-contract buyer.

Suit for specific performance: If you back out of your agreement, the buyer could sue you and ask the court to enforce the purchase agreement. If the court agrees with the buyer, the deal would move forward and you'd be obligated to stick to the original terms and proceed with the sale.

Sellers often wait to see if more attractive offers come in, especially in competitive markets. Accepting too quickly could mean losing out on better terms or pricing. However, waiting too long for the “perfect” offer can also mean missed opportunities. The listing agent provides guidance based on market conditions.

In theory, there's no rule about how quickly a seller has to respond to purchase offers. You can take as long as you want before responding since there is no official time frame. However, the industry standard is to get back to interested buyers within 24 to 72 hours.

No, the seller is under no obligation to accept any offer. And if the market is a strong seller's market, they are likely to wait for offers that are above asking price. Can a seller counter a “highest and best” offer? Yes, the seller can counter at any time during the negotiation process.

“The rule I've always followed is to never go more than 25% below the listed price,” he says. “Chances are, after fees, commission, and sentimental value, the sellers are already hurting. If you dip below that point, they may disregard your offer entirely.”

If your offer came in lower than others or you didn't meet certain financing requirements, a seller is likely to turn your offer down. To avoid your offer being rejected for financial reasons, it's important to have your mortgage preapproved.

Sellers have the right to reject any offer on their house, whether it's at or above the asking price. If you are considering declining an offer, you should remember that you may have to pay your agent a fee, and that rejection may have several consequences.

In any market transaction between a seller and a buyer, the price of the good or service is determined by supply and demand in a market. Supply and demand are in turn determined by technology and the conditions under which people operate.

Can a seller increase the price after an offer? ›

So long as the seller is not bound by a sales contract, the seller may be able to change the asking price. The statute of frauds requires that a contract for the purchase and sale of real estate be in writing and signed by both the purchaser and the seller.

While some REALTORS® may be reluctant to disclose terms of offers, even at the direction of their seller-clients, the Code of Ethics does not prohibit such disclosure.

“Generally, a seller can't cancel without cause,” Schorr says. “You could build in some contingency, but absent that, you had better be committed to the sale.” Reneging because you fear you underpriced the house, or you actually receive a better offer, doesn't count as “cause.”

As a seller, you can accept the offer, reject it, or counter it. Counteroffers are made by the seller in response to the buyer's initial bid. It also means the buyer is interested in the offer and the deal can go through with some changes.

While laws vary by state, in general, up until that contract is signed by both parties—even after counteroffers have been sent out—all new offers can be considered and accepted. Once both parties have signed it, however, the seller is pretty much locked into the deal.