Word of the Day: Irrevocable
Irrevocable: not able to be changed, reversed, or recovered.
In real estate, when we submit an offer, we input an irrevocable date and, very importantly, a time. This date and time is, typically, the next day or could be later in the same day the offer is submitted. Although, it could be for a few days, if the Sellers are hard to reach.
For this period of time, the offer cannot be changed, reversed or recovered by the Buyer. The Seller has up until the stated date and time to respond to the offer. If the Seller decides to counter the offer in any way, their counter-offer will also be subject to an irrevocable time.
For example: Buyer A submits an offer on Monday at 3 p.m. and their representative sets the irrevocable for Tuesday at 6 p.m. The Buyer cannot change or call-back that offer. It is a legal, binding offer up until Tuesday at 6 p.m. Seller B counters back with a price adjustment Tuesday morning and their representative changes the irrevocable to Wednesday at 6 p.m.