Offer
A buyer's written proposal to buy a property at a stated price and terms. It becomes a binding contract only when the seller accepts it as written and both sides sign.
Also called: written offer, make an offer, offer to purchase
Related terms
The signed contract between buyer and seller that sets the price, deadlines, contingencies and terms of a sale. Once both sides sign, the property is under contract.
A reply to an offer that changes one or more terms, such as price or closing date. A counteroffer rejects the original offer, and the other side can accept, reject or counter again.
A deposit the buyer puts down after the offer is accepted to show they are serious. It is held in escrow or a trust account and usually goes toward the down payment or closing costs at closing.
When a seller gets more than one offer at the same time. Sellers may ask for highest and best, and buyers compete on price, terms, and contingencies.
An offer term that automatically raises the buyer's price by a set amount above any competing offer, up to a cap. Sellers usually need to show the competing offer to trigger it.