One of my all time favorite books. If you haven’t read it, make the time. It’s well worth it…but today’s blog isn’t about that. Today I want to talk about time wishing the offer process. There is often a lot of confusion surrounding what happens – in fact, I just went through a similar process where the time for the other party to respond expired…twice! There are a few key points to keep in mind. Some may sound rudimentary but you would be surprised at how the pressure of the situation can affect an individual’s sound judgment. But that’s what you have us there for, right?
- Just because you submitted an offer, doesn’t mean that it has been accepted: Simple, right? People generally only get confused about this part a little later into the counter offer process but I’ve seen it start at the very beginning. Buyer rights an offer and asks, “So what’s the next step? When and where do I give my deposit too?” Unfortunately, next step is to wait until we see what the seller says. Boiler plate language on the contract states that the seller has three days to respond.
- Three days starting…now? Yes, but this can get a little confusing…but it’s still better than it used to be. The day you submit an offer (or counter offer) is day zero. You then have three additional days to wait for a response. For example, if you submit an offer on Monday at 3:30pm, the seller has until Thursday at 5pm (close of business) to respond. Feels like four days, right? The waiting can be interminable. If your agent knows that offers are due on a certain day, you can always ask them to shorten the time frame to respond.
- What happens when time runs out? You’ve blown past day three and still haven’t received a response from the seller or buyer. Hopefully your agent is in contact with the other side so that you know what’s going on. But if they aren’t…what now? Officially your offer has expired. If the other side wants to accept it they can but you are no longer bound by it. You do have a couple of options. You have the right to leave your offer open and go into contract. You also have the right to walk away. Your offer has expired and it is no longer valid. Just because the other side wants it now doesn’t mean that you still do. Make sure, however, that your agent communicates to the other side your intention.
Real estate is not a zero sum game. It is meant to be a win-win situation for all parties involved. There are times when it is difficult to get all parties on the same page because of distance; some times parties aren’t as technologically savvy as others and so you still need a “wet” signature rather than a digital one. Just make sure that your agent is talking to the other side as well as you. Communication the most important assets in real estate.