If a seller receives more than one offer, the seller can send to the buyers a counter that states the counter offer the buyer is receiving is a multiple counter offer. That puts each buyer on notice that there is more than one buyer for the subject property. It could be that the seller’s counter offer just states, “give us you final and best offer”. The buyer then needs to look at their original offer and decide if it good enough or look for ways to “sweeten it”, make it better. If the buyer thinks their original offer was good enough, then they would make a counter to the seller’s counter and state something like “Our offer dated such and such remains the same”. The seller does run somewhat of a risk by sending out multiple counter offers. Some buyers will immediately get “scared” and drop out. Why would they get “scared”? Because they are afraid this is going to turn into a bidding war. But let’s say there are 3 buyers and one of them drops out. The other two will not know that, so they will not get an advantage of knowing their competition for the property was just reduced by one making them stronger. If you are a buyer and you really believe that you have made the best possible offer you could, then stick with it. You might not get the property, but don’t agree to something you later will regret. As a buyer how do you know there are really other potential buyers for the subject property? You don’t. You hope that the seller and listing agent are dealing with you in good faith, but it is known to have happened. It may be just a coincidence, but offering to purchase a home that has been on the market for 180 days and all of sudden there are multiple buyers? Well, it could happen, but it is something to think about. Again go with you instinct, if you original offer is good or if you think there are not multiple offers, then just go back with the “original offer remains the same”. Another thing for buyers to remember when receiving multiple counter offers is that if there are three buyers, the seller does not have to send multiple counter offers to all three. The seller might not send a counter to buyer #1(does not mean they are of the running), and different terms for buyers 2 and 3. Another important point is that when a seller sends multiple counter offers to a buyer and the buyer accepts the seller’s new terms, it does not become a contract until it is sent back to the seller and seller signs it again. On the other hand in the example above with three buyers and the 1 buyer not receiving a multiple counter, the seller could wait until the other two returned their replies and then decide to take the 1 buyer that did not receive a multiple offer and sign their original offer. Number 1 now has a contract and the other 2 are out.

All of the Real Estate forms discussed on this blog are in reference to California Association of Realtors (C.A.R.) real estate forms that are provided to members.

List of California Real Estate Forms (PDF)