A seller listed their property for $620,000. A buyer submits an offer of $600,000. The seller responds with a counteroffer for $615,000. Before the buyer responds to the counteroffer, the seller receives another offer for $625,000. What should the seller's real estate agent advise the seller regarding the existing counteroffer?

Question: A seller listed their property for $620,000. A buyer submits an offer of $600,000. The seller responds with a counteroffer for $615,000. Before the buyer responds to the counteroffer, the seller receives another offer for $625,000. What should the seller's real estate agent advise the seller regarding the existing counteroffer?

Answer options: ✅ The seller should immediately revoke the $615,000 counteroffer before communicating about the new offer.

• The seller can accept the new $625,000 offer while the $615,000 counteroffer is outstanding.
• The seller must wait for the buyer's response to the $615,000 counteroffer before considering other offers.
• The seller should encourage the buyer of the $600,000 offer to increase their bid to $625,000.

Correct answer: The seller should immediately revoke the $615,000 counteroffer before communicating about the new offer.

Explanation: A counteroffer can be revoked by the offeror at any time before it has been accepted by the offeree. To avoid becoming bound to two contracts, the seller must revoke the existing counteroffer to the original buyer before accepting a new and better offer. Failure to do so could lead to the seller being bound by two contracts if the first buyer accepts the counteroffer before revocation is effective.