Expert: Karyn Foley - 8/9/2006

Question
Karen,

My husband and I recently signed a contract on a home - a counteroffer to the seller's original counteroffer.  We set the date that we needed a response by for August 8th - I know they have until Midnight on the 8th but now its the 9th and we still haven't had a response.  What happens now and what does that mean about our contract?  Please let me know what I should do next or if we have lost all chances on this home.

Thanks, Tiffany

Answer
Dear Tiffany:  I do not have a copy of your contract, but if it is as stated, then your counteroffer to the seller has expired.  On the plus side, if you wish to consider other homes, you are under no obligation to the original seller.  On the minus side, if you really wished to have purchased that home, then you need to strategize with your agent.  Perhaps your agent could call the seller's agent to confirm that nothing was received from the seller, and asking what it was about your counter offer that the sellers did not find agreeable.  If it was something minor, then they certainly should have responded.  But, if you really want that house, then you should make another offer that agrees with what the seller wants.  However, just to keep it straight and eliminate any confusion, make your new offer as a new offer;  not make it another counter to any other counter.  That always causes problems and assumptions that may prove incorrect.  It is starting from the beginning, which is exactly what it is any time there is a new offer or anytime there is a counter.  Please be aware that you did hot sign a contract on a home, you merely sighed an offer to purchase the home, and it becomes mutually binding in most states when it is mutually agreed on by all parties and signed by all parties.  In states such as New York, these agreements and contracts have a lot of discussion verbally that is put into a document by the lawyer to then be signed by all parties.  That sounds more reasonable than it is, because until all parties sign the agreement the home is still for sale and available for other offers to be considered.  Check with your agent to see what applies for you.  If you have no agent, call the department of real estate in your state.  Good luck to you, I hope it works out to your satisfaction.  Karyn Foley