Offer Expiration Date

The most misunderstood date in real estate!

Quite simply, this is the date on which an offer will expire.  Most commonly, the offer is prepared and extended by the buyer, to the seller. But a seller can also extend an offer to sell, to a potential buyer.

In either event, until the offer expiration date, the recipient of the offer has the right to accept the offer, which creates a binding contract.  Acceptance happens by signing and returning the document.

After that date, simply signing and returning is not enough. Rather, the extender of the offer has the right to approve the contract before it is binding.  In other words, if the seller returns the signed offer after the expiration date, it is a counteroffer subject to buyer's approval. 

Many sellers freak out when they see the offer expiration date. Don’t! If a buyer takes the time to extend an offer, they are very, very unlikely to bolt if the seller does not timely accept it. Rather, any rational buyer will show a little patience. So “missing” an offer expiration date is not a big deal!!! The buyer will almost certainly be thrilled to hear from you, whenever that may be.

Besides, any counteroffer by the seller terminates the offer. So if you get an offer and you know that you will be making a counter offer, then the offer expiration date is irrelevant. You won’t be accepting the offer in any event.

In almost all instances. the Offer Expiration Date is largely irrelevant. Either the seller will counter, or the buyer will still be thrilled to get back a signed document a day or two “late.”