Introduction
Appraisal clauses set the price based on the property’s appraised value, which can adjust the purchase price downward if the appraisal is lower than the offer. However, when a seller issues a counteroffer with a fixed price, that counteroffer supersedes the original offer and any conflicting terms in the original offer disappear. This means that only the terms in the counteroffer survive.
Appraisal clauses and counteroffers
An appraisal clause ties the purchase price to the appraised value of the home; if the appraisal comes in lower than the agreed price, the purchase price adjusts downward. But if a seller makes a counteroffer with a fixed price and says that all other terms remain the same, the counteroffer extinguishes the original offer. In many jurisdictions, including Nevada, a counteroffer functions as a rejection of the original offer. Once the buyer accepts the counteroffer, the new price becomes the enforceable term, and any appraisal-adjustment clause from the first offer no longer applies.
What is a lis pendens?
A lis pendens is a legal notice recorded with the county that alerts the public that a piece of property is involved in a lawsuit or legal claim (clarkcountybar.org). Recording a lis pendens clouds the property’s title and makes it very difficult to sell or use as collateral while the lawsuit is pending (www.investopedia.com). The notice generally remains in place until the dispute is resolved or a court orders it removed. Buyers often use lis pendens to preserve their claim to a property, but courts in many states warn against abuse of this tool.
Protecting yourself as a seller
- Make sure your counteroffer clearly states all changes and includes every term you intend to keep.
- Consult a qualified real‑estate attorney before agreeing to price adjustment clauses. If you don’t want the price to be subject to appraisal, strike that clause from the final contract.
- Understand that a buyer can file a lis pendens to preserve their claim, which will cloud your title and make the property hard to sell. If a lis pendens is recorded against your property, speak with your attorney about filing a motion to expunge it if the underlying claim is weak.
- Avoid verbal agreements; ensure all terms are documented in the written contract.
Conclusion
Real estate negotiations often involve back‑and‑forth offers and legal tools like appraisal clauses and lis pendens. Knowing that a counteroffer supersedes the original offer and that a lis pendens can stall a sale helps sellers protect their interests. When in doubt, get professional advice and insist on clarity in every term of your contract.
Dennis Yu
Dennis Yu is the CEO of Local Service Spotlight, a platform that amplifies the reputations of contractors and local service businesses using the Content Factory process. He is a former search engine engineer who has spent a billion dollars on Google and Facebook ads for Nike, Quiznos, Ashley Furniture, Red Bull, State Farm, and other brands.
Dennis has achieved 25% of his goal of creating a million digital marketing jobs by partnering with universities, professional organizations, and agencies. Through Local Service Spotlight, he teaches the Dollar a Day strategy and Content Factory training to help local service businesses enhance their existing local reputation and make the phone ring.
Dennis coaches young adult agency owners serving plumbers, AC technicians, landscapers, roofers, electricians, and believes there should be a standard in measuring local marketing efforts, much like doctors and plumbers must be certified.