When a seller rejects and then revises the terms of a buyer purchase agreement, this is commonly known as a counteroffer.
A counteroffer is a response made by the seller when they receive a purchase agreement from the buyer that contains terms or conditions they are not willing to accept. Rather than rejecting the offer outright, the seller may choose to make a counteroffer, which outlines the revised terms or conditions that they are willing to accept.
For example, let`s say a buyer submits a purchase agreement for a property at $500,000 with a 60-day closing period. However, the seller is not willing to wait that long and wants to close within 30 days, so they make a counteroffer of $500,000 with a 30-day closing period.
Once the seller makes a counteroffer, the ball is back in the buyer`s court. The buyer can choose to accept the counteroffer and move forward with the transaction or make another counteroffer with their own revisions. This back-and-forth negotiation process can continue until both parties agree on all terms and conditions.
It`s important to note that once a counteroffer is made, the original purchase agreement is no longer valid. Instead, the counteroffer becomes the new offer that the buyer can either accept or reject.
In summary, a counteroffer is a common practice in real estate transactions when a seller does not agree to the terms outlined in the buyer`s purchase agreement. It allows both parties to negotiate until they reach an agreement that satisfies all parties involved.
