How does a multiple counter offer work?

What is a multiple counter offer, and how does it work?

Brief summary on how multiple counter offers work

Silicon Valley home sellers have an option to issue a Multiple Counter Offer form. This is not the same as a regular counter offer form.

With the standard counter offer form, if the other party accepts it, signs it, and delivers the signed copy back to the party that issued the counter offer, it’s then a ratified offer, a done deal. Not so when there are multiple counters in play.

With the multiple counter offer process, the seller decides after one or more of the buyers accepts (or if they counter back and forth, or if one buyer improves his or her offer).  No matter the exact path, the seller ultimately must pick one offer and sign off on it to ratify the sale. In other words, when a buyer agrees to the multiple counter offer terms, it’s not a done deal.  The owner must sign again to accept and select that buyer. Only then is the contract ratified.

2 minute video discussion on multiple counter offers – key points

 

 

CAR and PRDS multiple counter offer paperwork

We have two sets of contarcts, addsenda, etc. in use in Silicon Valley – the PRDS and the CAR.  The California Association of Realtors (CAR) set is used throughout the state.  The PRDS is employed from about Los Gatos to somewhere south of San Francisco on the Peninsula.  Many areas such as Almaden or Campbell may work with either.

Both sets get updated periodically. The CAR form was updated in June 2023.
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