This week we had occasion to have a buyer make an offer on a home, have the seller accept the offer, and then after a few days, have the buyer ask that we submit an offer $30K lower than the one that had been accepted in writing.

Because of this, we felt it was necessary to post these remarks:

Many buyers do not realize that an offer to purchase real estate can quickly become a contract to buy that real estate, with all the obligations that such a contract entails. On our website, we have information on how this can happen, and why it is important to consider carefully any offer you may make.

A big issue is that by law, the offer, if accepted in writing, can obligate the buyer to purchase the property unless any of the contingencies built into the offer are not met. In the case we are speaking about, all of the contingencies were met and the seller had signed the offer document in acceptance of the offer.

It seems the buyer simply decided after the fact that the seller had accepted the offer too fast, and so thought they could make a second, lower offer. We had advised the buyer that they should make an offer at X dollars. Because they really wanted the home, they decided to make the offer at higher than we recommended, as the buyers agent.

Currently, the buyer is at risk of a law suite which will require them to purchase the property at the accepted price, and at least to forfeit the Earnest money they put up.

Not a good thing.

Take a look at http://www.homesalesri.com/making_offer.php for information about making offers to buy real estate.