Thread: HELP: Question for anyone knowing REAL ESTATE (Earnest Money Issue)

Let me first say that I am not an attorney, but have been involved in many real estate transactions. It would seem to me that when either party rejects a counter offer then the deal is dead.

First, she proposed a verbal counter offer after you presented the $215K offer. Your offer at $215K is no good unless you reassert it.

Second, how much time elapsed from your submittal of the $215K offer and her counter offer of $215?

Third, is there ANY deviation in any of the terms of her new $215K counter offer from your initial, now dead offer of $215K?

Lastly, who holds the earnest money and what state is this broken deal in?

to answer your questions ( and thanks for helping! btw)

1) the time elapsed form my original 215k offer to her 215k offer was about 5 days.
2)there was no deviation in terms from original 215k offer and new 215k offer.
3)the builder/seller holds the earnest money
4)right now they are saying they accept my 215k offer and if i back out they will keep the earnest money.

Originally Posted by TomAnto

First, she proposed a verbal counter offer after you presented the $215K offer. Your offer at $215K is no good unless you reassert it.

Second, how much time elapsed from your submittal of the $215K offer and her counter offer of $215?

Third, is there ANY deviation in any of the terms of her new $215K counter offer from your initial, now dead offer of $215K?

Lastly, who holds the earnest money and what state is this broken deal in?

Originally Posted by mrusajapan

Let me first say that I am not an attorney, but have been involved in many real estate transactions. It would seem to me that when either party rejects a counter offer then the deal is dead.

I am not an attorney or a licensed agent or anything, so keep that in mind.

I agree with mrusajapan. They rejected your counter offer of 215k and countered with the other deal with incentives. You rejected that counter offer. From what I understand, your offer was dead and rejected when they countered with the incentives.

Every time a contract is countered (anything changed from the original offer, unless the change is something more for wording or is so small that it doesn't change anything that is required by both parties, dates, ect.) it voids the first offer. It is like the counter offer becomes the very first offer ever provided, and the original offer now has been erased from existence.

With that being said, don't get too happy. Are you willing to take this to court and fight it if you must? You stated that they didn't sign any paperwork, so I know that but do you have proof that they made you that counter offer? Basically their counter offer on paper with dates on both offers and counter offers?

If so, it doesn't matter if they signed anything stating that they rejected your offer. They already rejected it by giving you something different, their counter offer.

Sorry for run on sentences, but that is the way it is from what I understand.

Five days is a long time between your offer, their counter of 219 and then finally their new offer of 215. Look at the contract to see if there is a time stipulation regarding how long your offer stands. Generally, 48 hours is reasonable. Anything longer and the offer starts to get stale and less likely that the offer stands unless there is specific reference in the written offer. I still don't know what state you are in, it matters sometimes.

Did you pay the earnest deposit by check and if so is it cashed? They are not supposed to cash the earnest deposit check until the sale closes or there is an event of default on the contract. You have not gone to contract and I'm guessing they didn't cash it. I'm also assuming you didn't forget to tell us something, it appears that they are bluffing you into the purchase and probably know better.

If you want out and never want to go back, them firmly that they countered at $219 and your offer was no longer valid after their counteroffer. Now they have offered the property to you at $215 and you decline. Try to do a lot of listening and only state the message you want them to hear, sometimes it is best to write an outline before you call. Don't get emotional and stick to the script.

If nothing convinces them you can always tell them that you'd rather not get an attorney involved and it is best to part ways by them releasing your earnest deposit.

I don't think there would be anything wrong with canceling the check or stopping payment based on what you've told us. Just make sure you read your written offer before you do anything. Don't skip any terms, read them, and if it sounds confusing ask someone. Don't tell them you intend to stop payment before you actually do it.

If the time has elapsed from the contract that you signed and they did not sign the contract and return it to you, then the deal is dead although maybe difficult to prove as it sounds like you dont have an agent working for you. If they have accepted your offer, didnt you get the results you wanted by walking away and are you wanting your money back for spite. Too many times people get caught up in the emotional aspects of the deal and dont look at it as a business transaction, which should have no emotions at all. I would say that you did in fact get what you were wanting and you should continue with the transaction

Why would the Builder write a contract at $211,000 and not sign it? I am assuming you do not have an agent representing you...

I am guessing the Builders sales people tried to shove an offer by the principals to get it approved and there was some pushback. After they refused your offer the deal is infact dead. They cannot come back at a later date and decide to accept without drafting a new contract.

File a complaint with whoever is holding the escrow deposit? Should be a title company or attorney. If it's in the builder account, file a complaint with the local builders association.

Why would you not want the home at the price you offered originally with the upgrades you wanted?

It sounds like the seller's last counter was verbal which doesn't mean anything. Your last written counter is the only piece of paper that matters. When you walked away, you should have done it in writing, again, verbal doesn't count. At this point it looks like you are defaulting on the contract.

Buying a home is an emotional transaction. Most people that are buying a home don't look at the transaction from a business point of view. For most this is the largest single investment of their lifetime and a scary proposition. Providing good service as a Realtor requires recognizing this.

In real estate timing and expediency is everything. Again, look at the written offer. There is most likely a sunset on the offer that is intended to protect both buyer and seller.

Frankly, after getting jerked around the way you have been I wouldn't continue with the deal from a business perspective anyway. Early behavior is usually an indicator of what is to come.