Real-Estate How-To: Take a Better Offer on Your House Than One You’ve Already Accepted

One of the things homeowners often wish for when selling their house is that they will be swamped with competing offers, all of which are above the asking price. That may happen in some locations, but in most cases sellers will not be so lucky.

So, you’ve accepted an offer and are getting ready to sign on the dotted line when, out of the blue, here comes another offer for more than the one you’re about to sign a contract on. Now what? Of course you want to get the most you can for your house, but is dropping an already accepted offer legal or ethical?

According to realtor.com, changing your mind and going for a higher bid after you’ve already accepted one is not recommended: “it’s unpleasant, unethical, and could even land you in legal hot water.” Realtor Bill Golden said:

Once a seller has accepted an offer, it’s very difficult to back out, even if you receive a higher one. Most deals allow a buyer to back out, but not a seller.

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But “difficult” is not the same as “no.” If you want to consider the higher offer, realtor.com lists several things you can do:

• Review your contract, especially if you haven’t yet signed it.
• Check your contract’s contingencies.
• Accept the higher offer as a backup in the event the one you have accepted falls through.
• Let the original buyer know immediately that you have decided to take a higher offer and return any deposit made with that original offer.
• Consult a lawyer.
• Be prepared. In this case that means, find out what a contract allows before you put the house up for sale. You may be able to add a clause indicating that all offers are contingent and that you will accept backup offers.

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