How Long Is a Home Offer Good For?

A home offer is a formal proposal from a prospective buyer to a seller, outlining the terms and conditions for purchasing a property, including the proposed price, financing, and contingencies. A key aspect of any home offer is its time-sensitive nature, as it remains open for acceptance only for a specified period. Understanding these time limits is important for both buyers and sellers in the real estate market.

Establishing the Offer Period

The buyer, often with their real estate agent or legal counsel, determines the duration of a home offer. This timeframe, including an expiration date and time, is documented in the written offer. Common practice often sets offers with relatively short deadlines, frequently ranging from 24 to 48 hours, though some may extend up to two or three days. These brief periods encourage prompt seller decision-making, reflecting fast-paced real estate markets.

The offer period begins when the written offer is presented to the seller or their representative. This marks the start of the countdown for the seller to accept, reject, or counteroffer. A clear expiration provides a defined window for negotiation and manages expectations for all parties.

Factors Influencing Offer Duration

Several elements influence an offer’s duration. Current real estate market conditions play a substantial role. In a competitive “hot” market with high demand and limited inventory, buyers might impose shorter expiration periods to incentivize a quick response. Conversely, in a “slower” market, offers might allow for longer response times.

The seller’s urgency to sell also impacts the offer duration; a seller keen on a rapid sale may prefer a shorter acceptance window. Additionally, the offer’s complexity, including contingencies like financing, inspection, or appraisal, can influence the proposed duration, as intricate terms require more review time.

Consequences of an Expired Offer

If a seller does not accept, reject, or counteroffer within the specified timeframe, the home offer automatically terminates upon expiration. An expired offer is no longer legally binding on either party. The buyer is then free to withdraw their proposal without penalty or obligation.

Once an offer expires, the buyer can pursue other properties. Should the seller later decide to accept an expired offer, their acceptance is considered a new offer to the buyer. The buyer then has the choice to accept this new proposal, effectively “reviving” the original terms, or decline to proceed.

Modifying or Revoking an Offer

A buyer can modify or revoke their offer at any point before formal acceptance by the seller, even if the stated offer period has not elapsed. To do so, the buyer must typically provide written notice to the seller or their agent.

A modification might involve changes to the proposed price, contingencies, or the offer’s expiration date. Revocation means the buyer withdraws the offer. Once formally accepted by the seller, an offer generally becomes a binding contract, limiting either party’s ability to unilaterally change or withdraw without consequences.