Texas Crammer Practice Exam

A salesperson receives an offer on a listing. If the sellers issue a counteroffer, what happens to the second offer received from a different prospective purchaser?

1. The second offer is rejected immediately

2. The second offer has the priority over the counteroffer

3. The second offer has equal status with the counteroffer

4. The second offer is regarded as invalid

The correct answer is: The second offer has equal status with the counteroffer

When a seller issues a counteroffer in response to an offer they received from a potential buyer, it essentially nullifies the original offer. However, the counteroffer does not impact or invalidate any subsequent offers that the seller receives. This means that if a second offer comes in after the counteroffer has been made, it is treated as a separate proposal that stands on its own. Hence, the second offer has equal status with the counteroffer. The seller has the option to consider both the counteroffer and the second offer, allowing them to potentially negotiate with one or both buyers. This flexibility in evaluating multiple offers is crucial for sellers as it gives them the opportunity to choose the most favorable terms that align with their needs, making it a key aspect of the real estate negotiating process.