I was recently asked this question as sellers often have concerns if they list their home slightly lower then recent sales, what would happen if they got a list price offer? I saw a recent article on this subject and thought I’d address this concern in my blog.
In short, the answer is yes, a seller can reject an at or above listing price offer. A listing is a solicitation of offers, not an offer to sell. This means that an offer at or above asking price does not necessarily mean the offer will be accepted.
In order for there to be a contract between buyer and seller, there has to be a “meeting of the minds” on all the elements of the contract. The seller must agree to all elements of the offer including price, financing, contingencies, and time for performance. If the seller has a problem with any of these elements, they have the right to reject the offer
In a sellers market, listings often receive multiple offers, sometimes much higher than asking price. This means that a buyers offer can be rejected because another buyer had a more appealing offer in terms of price, financing or terms like no appraisal contingency.
The bottom line … until the buyer and seller agree to all the terms of the purchase, there is no contract.