Extending the Offer
When you extend an offer of the price you are willing to pay for the home (also called a “bid”), the seller of the home has several options.  The seller may choose to accept, reject, counteroffer, or not respond to the offer.

A common belief of buyers is that they may continue house hunting after an offer is made.  Notification of the seller’s acceptance of the bid on the house, however, creates a legally binding contract.  

If the seller rejects the offer, makes a counteroffer or doesn’t respond, you have the following choices:  to accept the counteroffer, to make another offer or to reject the counteroffer and continue your search.  Thoroughly thinking through your choice to extend an offer on a home is very important. 

Be specific about the following details in your bid:

·         Your offered purchase price – the bid.

·         Concessions you would like the seller to make, such as contributing to the closing costs.

·         Financing contingencies, such as approval of a satisfactory mortgage with specific interest rate and terms, etc.

·         The amount of earnest money – your deposit – that is being attached to the offer.

Be sure that you have everything in writing. NEVER RELY ON VERBAL AGREEMENTS. The seller is not legally bound to anything discussed, promised, mentioned or agreed upon unless it is specified in the writing of the contract.