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A counteroffer isnt an acceptance because it materially changes the terms of the proposed contract. Legally, a counteroffer is considered a rejection of the original offer and the proposal of a new offer in its place.
Many sellers receive multiple home offers, so agreeing to a backup offer is normal if the first offer falls through or the buyer backs out. You can usually only accept a higher offer from other buyers if a clause states you can do so. This is especially common in a market with low inventory.
The short answer is yes, a seller can cancel a contract but only under particular circumstances. Even then, the seller will likely face consequences, as the laws around real estate contracts tend to favor the buyer over the seller.
Provide a detailed, data-driven justification for your asking price. Politely but firmly reject the offer and provide a counter-offer at your desired price. Emphasize that you are willing to negotiate, but that the buyers offer is simply to
If the offer hasnt been executed by both sides, the seller can totally keep showing and negotiating other offers. If it has been executed by both parties, they can continue to entertain other offers as ``back up offers, in case the original offer dies for one reason or another.

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No, the sellers cant unilaterally cancel a valid contract. Your attorney will be able to tell you exactly what the sellers can and cant do but cancelling a contract for a better offer isnt one of the choices. As mentioned, the appraisal contingency is the critical issue here - and yes, the actual words matter.

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