If a buyer makes an offer less than the asking price and the seller counters, what happens if the buyer does not accept the counter?

When a buyer makes an offer that is less than the asking price and the seller responds with a counteroffer, the original offer is considered rejected at that point. The counteroffer constitutes a new offer from the seller, which the buyer can either accept, reject, or choose to make another offer. If the buyer does not accept the counteroffer, there is no agreement, and the original offer is effectively voided.

In this situation, the buyer is released from the terms of the initial offer. Therefore, the buyer is not bound by the original offer once a counter has been issued. This is a standard practice in real estate negotiations and ensures that both parties have the ability to reach a mutually agreeable contract without being locked into previous terms.

The other choices suggest incorrect interpretations of the situation. For instance, stating that the buyer is bound to the counteroffer would imply they must accept terms over which they have no agreement. Additionally, the seller being unable to sell the property or the buyer losing their earnest money under these circumstances does not reflect the typical outcomes of a rejected counteroffer. Thus, understanding the implications of counteroffers and how they reset negotiations is crucial in real estate transactions.