{"id":137324,"date":"2019-11-27T19:12:10","date_gmt":"2019-11-28T02:12:10","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/rei\/glossary\/offer"},"modified":"2021-10-20T13:06:20","modified_gmt":"2021-10-20T19:06:20","slug":"offer","status":"publish","type":"glossary","link":"https:\/\/www.biggerpockets.com\/blog\/glossary\/offer","title":{"rendered":"Offer"},"content":{"rendered":"

What is an offer?<\/h2>\n
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An offer is a conditional proposal to buy or sell an asset or property for a set price that becomes legally enforceable once accepted. There are certain requirements for an offer to be valid\u2014most notably, that the conditions are clearly stated. The most common \u201coffer\u201d is a home offer made by a prospective buyer to a seller.<\/p>\n<\/div>\n

Details of an offer letter<\/h2>\n
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Legally, the \u201cofferor\u201d makes an offer, while the person receiving the offer is the \u201cofferee.\u201d An offer can be made verbally or in writing.<\/p>\n

Someone who has listed a home for sale will accept offers from prospective buyers. Alternatively, an online advertisement, such as an ad for a two-bedroom rental apartment for $1,000 a month, could be considered an offer, too. Making an offer is the first step toward forming a contract. (You should always include the six basic elements of any offer.<\/a>)<\/p>\n

Let\u2019s say Tom has an interest in purchasing a condo in his city. Tom searches online and finds an ad for a newly built condo at a purchase price he\u2019s comfortable paying. The ad itself is an offer by the seller to sell their home to a potential buyer. However, Tom may make a counteroffer that is below the asking price, creating a new offer that would have to be accepted by the seller.<\/p>\n

An offer is the first of six factors that create a contract:<\/p>\n<\/div>\n

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  1. Offer<\/li>\n
  2. Acceptance, which can be verbal, physical, or written<\/li>\n
  3. Consideration, also known as the established price<\/li>\n
  4. Mutuality, where both sides agree to terms<\/li>\n
  5. Capacity, which ensures that both parties understand the terms<\/li>\n
  6. Legally acceptable terms\u2014or the final, signed contract.<\/li>\n<\/ol>\n
    An offer can be for money or for services. Offers can be made via a letter, newspaper, fax, email, or behavior, among others. An offer isn\u2019t technically considered an \u201coffer\u201d until it\u2019s received by the offeror\u2014and it won\u2019t move forward toward an enforceable contract until it\u2019s accepted.<\/div>\n
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    For Tom\u2019s condo sale, the offer is forthright: The seller placed an ad with a Realtor that offered the condo for sale with a particular price. Tom either accepts the value listed or counteroffers with a lower price, which the owner can accept or decline.<\/p>\n<\/div>\n

    Accepting an offer<\/h2>\n
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    Many offers include an acceptance deadline. Unless stated otherwise, the assumed deadline for acceptance is 30 days after making an offer. (Note that offers can be rescinded if the offer hasn\u2019t been accepted within a reasonable amount of time.) Offers can include a variety of conditions and terms, such as price, delivery date, discounts, or quantity.<\/p>\n

    Once the offer is accepted, both parties are in a legally enforceable agreement. However, an offer is very different from a solicitation\u2014referencing that you might sell something isn\u2019t considered an offer. But saying that you would sell an item for a set price on a particular date is.<\/p>\n<\/div>\n

    Ending an offer<\/h2>\n
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    Some offers have an acceptance time limit. And an offer can be revoked at any time prior to acceptance. The offer can also be terminated due to:<\/p>\n<\/div>\n