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Counter Offers are made in response to an Offer to Purchase or to a prior Counter Offer. In this case the Seller is responding to our Buyer's offer to buy the home dated May 1st. |
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Check below butterflies for our explanation of contract paragraphs |
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This is a counter offer to Offer Dated:_May 1, 200x__
Between _____Mrs. Joan Buyer_____ (Buyer)
and ___Mr. Archie Seller______ (Seller)
for property located at: |
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ADDRESS __________134 Harbor Place
CITY_____Bakersfield____COUNTY___Orange_
STATE____California__________ |
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Archie Seller is responding to Joan Buyer's offer of May 1st.
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- The Buyer can use this same format to respond to the Seller's Counter Offer
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In this case the Seller inserts: |
- the Buyer's name
- The date of the Offer he is responding to.
- The address of the property
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| In most cases the address of the property is not required. |
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| 1. TERMS. The terms and conditions of the above Offer are accepted subject to the following: |
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Down payments and mortgage loan amounts shall be adjusted proportionally to equal the agreed Purchase Price |
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| The Seller accepts the terms of the Buyer's Offer except as described in the Counter Offer |
- This Counter Offer becomes part of the original Offer to Purchase (exactly the same as if Seller had written his changes in the margins of the Buyer's Offer).
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| Down payments and mortgage amounts are adjusted to equal the purchase price |
- If Buyer offered a 20% down payment with his $150,000 offer; he must come up with a 20% down payment at the Seller's new asking price ($30,600 on an asking price of $153,000).
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| B. |
Paragraphs in the Offer which require initials by Buyer and Seller, but are not initialed by Buyer and Seller are excluded from the final agreement unless referenced for inclusion in paragraph C below. |
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| Our Buyer had inserted the following non-standard paragraph in his Offer to Purchase |
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Seller shall pay Buyer's cost of obtaining a mortgage loan, including appraisal fees, credit reports, loan points, and underwriting fees. Such cost not to exceed $__3,500___ .
Buyers initials ____J.B._____ Seller's initials ____________ |
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The Counter Offer makes clear that these non-standard paragraphs are not part of the agreement unless initialed by both Buyer and Seller
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- If not initialed by the Seller, non-standard paragraphs and clauses are not part of the final agreement.
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| C1. |
Paragraph 2A of the Offer is changed to read:
The purchase price to be paid by the Buyer at closing is: A hundred & fifty three thousand__ dollars, $_153,000_____. |
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| The Seller responds to the Buyer's Offer by reducing his asking price to $153,000
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Original asking price |
$155,000 |
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New asking price |
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$153,000 |
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Buyer's initial offering price |
150,000 |
150,000 |
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Difference |
$5,000 |
$3,000 |
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| Our Buyer and Seller were $5,000 apart, now they are $3,000 apart. |
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| C2. |
Paragraph 10-B2 of the Offer is changed to read:
Seller shall pay Buyer's cost of obtaining a mortgage loan, including appraisal fees, credit reports, loan points, and underwriting fees. Such cost not to exceed $__2,000___ .
Buyers initials _________ Seller's initials ____A.S.____ |
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| Our Buyer's Offer required the Seller to pay up to $3,500 in mortgage closing costs: |
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Seller shall pay Buyer's cost of obtaining a mortgage loan, including appraisal fees, credit reports, loan points, and underwriting fees. Such cost not to exceed $__3,500___ .
Buyers initials ____J.B.____ Seller's initials ______ |
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| In this Counter Offer, the Seller limits the amount he will pay for mortgage costs to $2,000. |
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Paragraph 10-B2 of the Offer is changed to read: |
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Seller shall pay Buyer's cost of obtaining a mortgage loan, including appraisal fees, credit reports, loan points, and underwriting fees. Such cost not to exceed $__2,000___ .
Buyers initials _________ Seller's initials _A.S.___ |
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| To accept this Counter Offer, the Buyer must not only sign paragraph 4, he must initial all paragraphs such as above. |
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| C3. |
Paragraph 10-B3 of the Offer is changed to read:
___ Buyer _X_ Seller shall pay half of closing costs, including attorney fees, title search, title insurance, and document insurance. Such closing costs not to exceed $__500__ .
Buyers initials ______________ Seller's initials ____A.S.___ |
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| Our Buyer had asked the Seller to pay up to $1,000 of fees and "other" closing costs. |
- This was done In paragraph 10-B3 of the Buyer's Offer.
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| In this paragraph, the Seller agrees to pay up to $500 of "other" closing costs. |
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| 2. OTHER OFFERS: Seller may continue to offer the property for sale or lease, and to accept other offers prior to receipt of the Buyer's acceptance of this Counter Offer by signing paragraph 4 below. |
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| The Buyer can accept this Counter Offer by signing paragraph 4 (and placing his initials in all the required places). |
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| The Seller has reduced his asking price from $155,000 to $153,000, plus he has agreed to pay up to $2,000 of mortgage loan costs and up to $500 of other closing costs. |
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Original asking price |
$155,000 |
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New asking price |
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$153,000 |
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Seller pays mortgage loan costs |
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- 2,000 |
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Seller pays other closing costs |
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- 500 |
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Net asking price |
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$150,500 |
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| Seller is free to offer the property to other buyers until this Buyer accepts this Counter Offer. |
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3. EXPIRATION: This Counter Offer shall expire 30 (or___ ) days after the date signed by the ____Buyer, _X_ Seller preparing this counter offer:
____Mr. Archie Seller______ Seller Date: _May 12, 200x_ |
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| This Counter Offer expires if not signed by the Buyer within 30 days after May 12th (the date signed by the Seller). |
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4. ACCEPTANCE: This Counter Offer is accepted.
_________________________________ (Buyer) Date: __________
_________________________________ (Buyer) Date: __________
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| Bottom Line: |
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- The Seller's Counter Offer reduces his asking price by $2,000 and offers to pay portions of closing costs.
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Original asking price |
$155,000 |
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New asking price |
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$153,000 |
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Seller pays mortgage loan costs |
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- 2,000 |
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Seller pays other closing costs |
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- 500 |
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Net asking price |
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$150,500 |
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Buyer's Offer of May 1st
Buyer offered to pay $150,000 if Seller paid $3,500 in mortgage loan costs and $1,000 in other closing costs.
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Seller's asking price |
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$155,000 |
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Offering Price |
$150,000 |
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Seller pays mortgage loan costs |
- 3,500 |
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Seller pays other closing costs |
- 1,000 |
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Buyer's Net Offer |
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$145,500 |
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