Can a Seller Really Demand More Money After Accepting an Offer in New Jersey?

Buying or selling a property is a major financial transaction, and it's natural for both parties to want the best deal possible. In the state of New Jersey, once an offer has been made and accepted, it's generally considered binding but still not under contract as it goes into the attorney review process where both buyers and sellers can still negotiate changes or modifications as well as accept, reject or counter those changes. Both parties can also negotiate on issues such as the purchase price, closing date, and contingencies outlined in the contract. The question is, can a seller ask for more money after accepting an offer in New Jersey?

The short answer is that it's generally not possible for a seller to ask for more money after accepting an offer in New Jersey, as both parties have entered into a legally binding agreement to sell and purchase the property at the agreed-upon price. However, the buyer has the right to ask a seller to lower the price should the property not appraise for the accepted price in the contract at the time of acceptance. 

One common reason a buyer has the right and may ask for money or credits from a seller is if there are unexpected repairs or issues with the property that were not disclosed before the sale. For example, if a home inspection reveals any major issues such as a cracked foundation, the buyer may feel that the agreed-upon price no longer reflects the true value of the property. In this case, the parties may need to negotiate a price adjustment in the form of a seller credit at closing or decide to terminate the contract.

A scenario where a seller can ask for more money is if there is a contingency in the contract that allows for such an adjustment. For example, if the buyer's financing falls through or the appraisal comes in lower than expected, both parties may then be able to renegotiate the price at that point only or terminate the sale. At that time, the seller can relist the home on the market or be able to ask for a higher price than the one they accepted or the property was initially listed for. However, the contingency must be specifically outlined in the contract, usually the appraisal contingency, so both parties have the right to exercise options.

It's important to note that attempting to ask for more money after accepting an offer can lead to legal disputes and damage the seller's reputation. Therefore, it's crucial for both parties to thoroughly review and understand the terms of the contract before signing and to be transparent about any potential issues with the property in the attorney review process.

While it may be tempting for a seller to try to ask for more money after accepting an offer, it's generally not possible in New Jersey without a valid reason or a contingency in the contract. Buyers and sellers should communicate openly and always seek legal advice from their representing parties, if necessary, to ensure an honest and transparent transaction for all.