By the time you submit your initial offer to the Seller, we’ve done plenty of research on the neighborhood, the home, and the current market for that particular home. Even though our offer might be great, the Seller will often counteroffer anyway. When you get a counteroffer from the Seller, it means that you don’t have a contract with them. Their counteroffer is a dismissal of your initial offer, which becomes invalidated.

For example, if they submit a counteroffer on the price, you can say no. The Seller can not go back later and accept your original offer because they took it off the table with their counteroffer. That may sound confusing, but you just need to remember that nothing is set in stone until both parties have signed the offer and agreed to all the points.

Once both parties have agreed, the offer becomes an Executed Contract, and it is taken to the Title Company. The earnest money deposit is also taken to the Title Company, and the Option Money is given to the Seller, or their Agent. At this point, if you have negotiated an Option Period into the Contract, you will have time to complete your inspections, finish your loan application, talk to the insurance companies, etc.