Question(s):
If I get a full-price offer for my house, do I have to take the offer? My house is currently listed, but if and when I would want to sell privately, are there any rules that cover full-price offers?
What if the Buyer wants my house at any cost, even a higher price than the list price; must I accept that offer? My agent told me I must take the offer. He said he spent a lot of money advertising my house, and since his work and his sign elicited a Buyer prepared to pay full price, I must sell. Is he right?
Answer(s):
The rules that cover your offer apply whether you have your property listed with a real estate resale company, or whether you are selling privately. The rules are the rules that apply to, and govern, contract law.
No, your agent is not right.
Typically, you would not have to accept the offer. Why? Because there is very much more to a Buyer’s contract Offer to Purchase than the offering price.
Read my article about what you need to take into consideration and double-check when you receive an Offer to Purchase. "It's OFFER TIME - Now What?" (what you need to check when an offer comes in)
http://www.carolyne.com/bramptonhomes/offer.html Any (and that means ANY) change to an Offer to Purchase, commonly referred to as an Agreement of Purchase and Sale in many areas (remember, real estate is local), negates the contract. It is a contract. Until and unless all parties to the contract come to a “meeting of the minds,” there is no fulfillment of the contract’s validity.
It is vital that you read every word of every line of the contract; even read the fine print. If you disagree with any area within the structure of the contract and make any change whatsoever, the contract typically dies on the spot. You have just created a new offer; changes require that the other side now agree with your changes, failing which the offer dies again. Typically on your initial contract you would see an irrevocable date; this is the date by which you must make a decision, and by which time the other side must have been notified of your decision. If there are changes, you need to provide enough time for the other side to respond, so you will change the irrevocable date. (Caveat: don’t doodle on the contract papers; any changes require initials by all parties.)
An example: perhaps your full price offer does not provide the closing date (typically the moving date, but not necessarily so) that you asked for in your listing. So yes, you have a full price contract, but must you take it? Of course not. Maybe the Buyer has indicated that certain chattels and/or fixtures must remain with the property at closing. But you had not intended to leave certain of these items. Perhaps you don’t even own them, or would need to replace them at your new location at big cost(s) to you. What value do the items have to you, and are you even prepared to negotiate these items? So yes, you have a full price contract, but must you take it? Of course not.
Is the Buyer asking to give you a mortgage? And you did not have that in mind when you placed your property on the market? So yes, you have a full price contract, but must you take it? Of course not.
There’s a myriad of conditions, contingencies and wish lists to be dealt with. You must be absolutely certain that when you dot the i’s and cross the t’s – that you fully understand exactly what it is you are contracting for. If you feel so inclined by all means take your offer to your attorney for review.
Do not be intimidated by real estate agents trying to rush you or to push you to sign right now. Do not put your attorney in the position of advising you about an acceptable price. Likely the attorney (and his staff) is not in the business of being a REALTOR®. If not, then he or she would not likely be privy to inside real estate information pertaining to current market conditions, enabling him to guide you in regard to appropriate pricing. His advice should be sought relative to the contract, its terms and conditions – that they are written in a legal format and acceptable to you from the legal perspective. His job is to protect you; to save you from yourself in some cases.
There is nothing in your listing contract (in most cases) that would say that if you receive a full price offer, you must take it. Think it through and be absolutely certain you agree with all the other items and issues to be dealt with.
This information is not legal advice. Always seek legal advice from your own attorney.
Copyright © Carolyne Realty Corp. This information may not be reprinted in full or in part without permission in writing and is protected by International Copyright Law. All rights reserved.
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