A buyer of a property had a real estate agent write up an offer to purchase a home. The offer was contingent upon the sale of their existing home. The seller made a counter-offer accepting the buyer’s offer, but reserved the right to continue marketing the home, seeking higher offers and granting the buyer a right of first refusal to remove their contingency if a better offer came in. The buyer accepted the seller’s counteroffer and immediately listed their existing home for sale. Shortly thereafter, the seller notified the buyer’s agent that a better offer had been received without contingencies. What should the agent advise the buyer to do?
Advise the buyer of the advantages and disadvantages of removing the contingency and buying the home before the sale of their existing home.
Any time terms must be changed, as with a counteroffer, the principal must make the decision. It is the agent’s responsibility to give the client all the information and allow them to make their own decision.