Does the seller of a home have to accept an offer?

[pinoyhero]

If the seller lists for $275,000 and you offer $275,000 are they obliged to sell?

[infected]

Not until they accept I don't believe so, it's just an invitation to negotiate. They shouldn't be bound by a listing. Just a wild guess at 6 in the morning though.

[anothers10]

no

[pinoyhero]

So what they can list, I say fine ill buy it and they say nah, now I want more? Seems odd and that at the very least the realtor would be pissed

[benyl]

Contract law is weird.

Technically, but saying they want $275K, that is considered an offer.

By you "offering" $275K, that is acceptance, so long as you don't stipulate any conditions, I think they have to sell.

Conditions like home inspection, RPR, financing do not mean acceptance. You are basically saying that if there is something wrong with the house, you want out (smart thing to do by the way).

Condition free, I think they have to take your $275K and you are bound by the terms of the acceptance at $275K.

I just sold a house yesterday. The conditions have all been waived. My understanding is that they are bound by law to by my house.

[pinoyhero]

Hmm, some conflicting views, anyone know fact on this one?

[benyl]

Originally posted by pinoyhero
Hmm, some conflicting views, anyone know fact on this one?

ask barmanjay or mywifeshot

[spikerS]

it has been awhile, but i dont think they are required to sell.

However, if an offer is made for the full asking price, and the seller refuses, and the sale never happens, the selling realtor can now expect full commission on it, as he did find a buyer for said house, at full price, and it is up to the owner to pay them.

[Sugarphreak]

....

[barmanjay]

wow
i have never had this happen to me, nor have i heard of this happening to anyone i know.
however i do suspect spikers is right (his dad was a very experienced realtor)
Ill forward this theoretical question to my broker for an answer (he teaches the real estate act at mount royal)

hopefully we get a prompt response.

[Amysicle]

Just my thoughts, but I don't think so. Like when the Calgary housing market was booming, houses were getting multiple offers much higher than the list price on the same day so it would have made sense if the seller held out to see what the best offer was instead of being forced to accept the first offer that met the minimum requirements.

[barmanjay]

on a side note while i await an educated response.

there is nothing stopping the seller from terminating the listing contract at anytime, even during negotiations.

you could have a full price off, but you pissed him off somehow; he can just pull the listing off the mls for a week or so then relist.

same with the realtor listing it too low, seller can terminate the listing then re-list at a higher price., with a different realtor.

[Weapon_R]

There is no obligation to sell because there is no acceptance and no consideration, therefore no contract.

[HRD2PLZ]

The seller is not obligated to sell, but in most cases, as per the listing contract he/she will be liable to pay real estate commissions. I've never personally experienced this but I am sure in most cases it can be negotiated out.

[masoncgy]

Is this just a hypothetical or is this an actual situation?

You don't really ever hear of someone turning down an offer from a buyer to purchase at the list price, so that's why I'm curious.

[Sailz]

Originally posted by Weapon_R
There is no obligation to sell because there is no acceptance and no consideration, therefore no contract.

Beat me to it....This is the correct answer.

[barmanjay]

Originally posted by Weapon_R
There is no obligation to sell because there is no acceptance and no consideration, therefore no contract.

My broker has been in the situation where a full price offer came in and the seller decided they wanted more.

They just pulled the listing and relisted higher.

Under the sellers brokerage agreement, they are obligated to pay the full commission to the sellers brokerage (not the buyers). However if they are simply relisting after a full price non-conditional offer. The brokerage will work with the sellers.

If the sellers decide not to list after pulling the listing after a full price non-conditional offer. The sellers brokerage has legal right to sue the sellers for full commission.

[msouther]

As has been said above, a seller has three options:

- Accept
- Counter Offer (turns decision making power back to buyer)
- Reject

If the seller receives a full price offer but doesn't accept, the seller is obligated to pay the listing realtors commission.

Since the majority of properties don't sell for list price, I can see why this wouldn't happen too often, unless it was a sellers market or the list price was low in order to generate multiple offers.

[CokerRat]

Originally posted by benyl
[B]Contract law is weird.

Technically, but saying they want $275K, that is considered an offer.

Just to clarify for bar trivia and budding contract administrators, you've got this backwards. When something is offered for sale for an advertised price, the offer is actually being made by the buyer and acceptance is by the seller.

[quazimoto]

Not necessarily the offer amount either. Many people other conditions attached to the offer are more important than the amount. Home inspections, mortgage qualifications, selling their home first, etc etc etc.

Also even after all the terms are waived a buyer can still legally back out. I'm not saying it's easy or proper to do this but it did happen to us back in 2004 and we ended up in a serious fight just to keep the clown's deposit.