What do agents need to know about responding to offers?

For listing agents, offers are the harvest, what we’ve been working so hard to get throughout the listing period. From prep to marketing to public comments, our focus is on getting offers. Offers open the door to negotiation and get us closer to the reward: getting paid.

• But what if they don’t meet the seller’s expectations?
• What happens when you get too many of them at the same time?
• What happens when we get too many lowball offers on a fixer?

There are hard-and-fast rules about presenting offers that rule Realtors and licensees in general. But how to respond to them? 

Sellers have four options: accept, reject, counter or do nothing. Silence is a legal response, and offers that have expired can be revived — yes, expired offers do not disappear from the negotiation table — they just come back on the seller’s terms. What makes the comebacks possible are the relationships we create with our colleagues.

Currently, I’m getting a lot of lowball offers on a fixer. I could not remember for the life of me what happens to offers that aren’t responded to but are not rejected — because I know that’s “been a thing” at some point in my career — the offers that expire. 

My questions just inspired more questions from my colleagues. Here are some of the more common ones I came across. Hope you find this helpful, and if you have questions, send them to me here.

Question: Am I legally required to present every offer my seller receives, even the ones I know they will reject?

Answer: Yes, but not completely. California Civil Code §2079.23 requires the listing agent to present all written offers to the seller in a timely manner, regardless of whether you think the seller will reject them. The National Association of Realtors (NAR) also has strict rules in place about presenting offers.

The exception is if the seller gives you written instructions otherwise — that you should not present offers below a certain price or with specific terms — in writing. Be sure to keep those instructions in your file.

Our job is to deliver, not filter, and let the seller decide what to reject. 

Question: What happens if a buyer accepts my client’s counter but my seller has changed their mind?

Answer: Call your broker … 

I hate when this happens because it puts everyone in a bad spot, but here is the hard truth: Once the buyer accepts your counter, you likely have a binding contract. 

In California, when a seller submits a counteroffer, the buyer accepts, and their agent delivers the acceptance to the seller or their agent, a binding agreement is formed. The seller does not get to change their mind at that point and pretend the deal never happened.  

 The talk goes from “How do I get out of this?” to “What are your options and consequences?” The seller may be able to negotiate a mutual rescission, but that requires the buyer to agree, and they usually want something (money) in return.  

Question: What do I do if a buyer’s agent demands written proof that I presented their offer?

Answer: The CAR RPA has a box for this. Page 10, under “Real Estate Brokers,” right there in Paragraph E. It says that if the buyer’s broker makes a written request, the seller’s broker has to confirm in writing that the offer was presented to the seller. 

The same page also has a spot where the seller’s broker initials and dates when the offer was presented. So, when a buyer’s agent demands proof, you point them to the form itself. No separate letter. No special email. 

And if the seller is not interested? There is a Rejection of Offer box right there on the same page. “No counteroffer is being made. This offer was rejected by Seller on ______ (date).” Check it. Seller initials it. Send it back. The DRE Reference Book says it is “good practice” to provide that written acknowledgment when the offer is rejected and no counteroffer is being made. 

Question: If my seller does nothing and the offer expires, can they go back and accept it later?

Answer: If you keep the lines of communication open with your colleagues, there is a chance you can counter that original expired offer. Technically, once an offer expires by its own terms, the seller no longer has the power to accept it. Under California law, an offer is terminated by the lapse of time stated in the acceptance clause, and after that time has run, no contract can be formed by simply signing the old offer.

But that does not mean the deal is dead. A late acceptance can be treated as a counteroffer, which the buyer can then choose to accept or reject. So, if the seller wants to move forward, the cleanest path is to call the buyer’s agent, confirm the buyer is still interested, and either have the buyer acknowledge the late acceptance or have the seller counter the original offer. 

An expired offer is not the end of a deal. It is just the end of a deadline. A phone call and some paperwork can bring it back.

Each week in America Answers, Inman contributor America Foy answers questions from the industry at large and offers advice on how to handle the situation.

Have questions? Email America Foy