A Sudden Twist In A Home Purchase
You submitted an offer on a house, and your agent told you it was the only one on the table. You offered a significant amount in cash and a lot more contingent on the sale of your own home. You felt confident, maybe even relieved. But the next day, you learned the seller had accepted a completely different offer and the deal was effectively done. That can feel like a gut punch, and you may be left wondering how that’s even possible in real estate.
AlexandrMusuc, Shutterstock; Factinate
“Accepted” Isn’t Always “Final”
One thing to keep in mind is that until both buyer and seller sign a contract, nothing is legally binding. A seller might verbally accept your offer, but until that acceptance is formalized in a signed purchase agreement, they’re still free to entertain other bids or counteroffers. That’s because the seller hasn’t yet committed to a contract in writing.
The Role Of Written Contracts
In most jurisdictions, a real estate contract becomes legally enforceable only after both parties sign a written offer and acceptance. Up to that point, even a verbal acceptance or an agent’s statement that you’re the only buyer is not in any way a binding agreement. Sellers can keep soliciting offers or even pick a higher one before any contract is signed.
Multiple Offers Can Appear Suddenly
Houses for sale can attract new interest at any time, especially in hot markets. Sometimes sellers will tell early buyers that there aren’t any other offers just to spur a quick bid. But if another buyer swoops in with a stronger offer, whether it’s a higher bid, fewer conditions, or quicker closing, the seller can pivot before any contract is finalized.
Why A Better Offer Tempted The Seller
Sellers are just looking for the best possible deal they can get. A higher offer, especially one with fewer contingencies or stronger financial terms, can look much more attractive and financially secure. In a seller’s market, sellers’ agents often encourage backup or better offers to maximize their client’s return.
Contingent And Non‑Contingent Offers
Offers often come with contingencies, conditions that have to be met like financing, appraisal, or home inspection. Contingent offers give buyers more protections, but they also give sellers more reasons to seek non‑contingent offers that close faster and with less risk to themselves.
Why Contingencies Matter
A contingent offer isn’t necessarily bad, but it can be less attractive to a seller than a similar price with no contingencies. If another buyer comes in and makes a non‑contingent offer or waives certain conditions, the seller may naturally lean toward that one just to reduce or eliminate uncertainty and speed up the sale.
The “72‑Hour Clause” And Similar Terms
Some contracts include clauses, like the 72‑hour or kick‑out clause, that let a seller accept another offer and then give the first buyer a limited window to meet the new terms or back out. This keeps sellers flexible while giving buyers some protection.
When Contracts Are Signed
Once a contract is signed and all contingencies are removed, a seller generally can’t entertain other offers without breaching the contract they just signed. At that point, backing out could expose them to legal liability. Until then, there’s not much stopping them from accepting another bid.
Your Offer Might Still Be Considered
If your offer was truly submitted and open, not expired, the seller might use it as leverage to negotiate better terms. Sometimes sellers will tell a buyer they’re the only one so that buyer will bring a better offer to the table, at which point they’ll then reveal other interest once the offer progresses.
Importance Of Deadlines And Expiration Dates
Adding an expiration date on your offer can protect you. An offer that simply sits with no deadline gives the seller an open window to consider other bids or drag their feet until something better arrives. Clear deadlines are more likely to force a decision.
Verbal Acceptance Isn’t Enough
A lot of homebuyers find this one out the hard way: an agent saying your offer was accepted isn’t legally binding until the contract is signed by both sides. That time period between acceptance and contract signing creates opportunities for sellers to reconsider their options.
Your Agent’s Advice Matters
Real estate professionals should always clarify whether an acceptance is merely verbal or backed by signed contracts. Miscommunication can leave buyers thinking they have a deal in place when, legally, they only have one offer on the table. Always ask for clarity in writing.
How Houses Can Continue Receiving Offers
A seller can choose to continue showing the home or accept backup offers until the first contract is signed and airtight. This strategy can generate additional competition and lead to better final outcomes for the seller, even if it may feel unfair for early bidders.
What “Backup Offers” Are
Even after a seller accepts an offer verbally, he/she could still solicit backup offers. These are standbys that only come into effect if the original deal falls through. In some markets, backup offers are a commonplace part of the bargaining and negotiation game, keeping demand and prices high.
How To Compete In Multiple Offer Situations
If you really want a home, you’ll have to consider offering stronger terms: higher price, larger earnest money, fewer or shorter contingencies, or faster closing timelines. All of these options can make your offer more attractive and reduce the seller’s incentive to look elsewhere.
When The Seller Plays Buyers Strategically
Some sellers use offers strategically, telling one buyer that their offer is the only one on the table to encourage quick offers before triggering a bidding war. This can be legal, though it can feel misleading. Always protect your own interests by asking for written confirmation of acceptance.
Legal Recourse After Signing A Contract
Once both sides sign a legally binding contract and contingencies are removed, the seller is generally unable to take anymore offers without breaching the agreement. In rare cases, buyers can pursue legal remedies, but this is costly and stressful.
Emotion Vs Strategy In Home Buying
It’s easy to fall in love with a house, but letting strategy guide decisions helps avoid heartbreak. Instead, try to focus as much as you can on market conditions, timelines, and the legal mechanics of offers rather than on verbal assurances of exclusivity.
Turn The Loss Into A Better Strategy
Losing out on a house despite thinking you had the only offer stings, but this kind of thing happens all the time. It’s also a learning opportunity. Next time, insist on clear contract terms, set expiration dates, and talk to your agent about adopting a more competitive strategy in hot markets.
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