Doesn't the seller have to accept my offer if I offer full price?

                                                                              

Many are surprised at the answer to this question because the answer is "no."  Having gone through this several times, the most recent being this month, I am well aware how confusing this can be to the public. This issue seems to come up most often with foreclosed property that is listed under market value and on which several offers come in, although it could come about on any property offered for sale either by a real estate broker, law firm, or for sale by owner.

Let me explain it this way...

Listing property for sale is an invitation from the seller for buyers to make offers. The seller is not obligated to sell the property even if a buyer makes a full price cash offer.

The above is true because the seller has not signed the offer and there has been no agreement on terms, of which there are many in any agreement for example: close date, possession date, earnest money deposit, inspections, and so forth. 

I have found this makes people very angry to hear this and they just don't understand why. It's really a simple concept, until there is an agreement in writing, nobody is obligated in a real estate transaction. The mere offering of money does not trigger any legality which would force a person by law to turn over their property to you, and no, a Multiple Listing does not fit the bill.

The only agreement the seller has with a listed property is with the listing broker. If a full price offer comes in then most brokerage agreements state that the seller will be obligated to pay the broker's fees because the broker did what he/she was supposed to under under the agreement which is produce a buyer at the seller's price and terms. However, the broker has to elect to ask for the payment, it is not automatic and a broker may choose not to demand the seller pay the agreed upon fees is he/she chooses not to in this scenario.

The seller may even choose to accept an offer below full price if there are two competing offers. The seller is under no obligation to act upon the first offer unless he or she so chooses. In these cases the buyer offering full price and the buyer with the first offer cannot bind the seller or limit the choice of which offer they should accept because the seller can turn down all offers and not be obligated to sell.

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