Why an Accepted Offer Means Almost Nothing in New York City Real Estate
Buying property in New York City can feel like winning the lottery when your offer gets accepted. But in reality, an accepted offer in NYC real estate is far from a done deal. Until a contract is fully executed, signed by both parties, and backed by the required deposits, that “acceptance” offers very little legal or practical protection. In other words, you’re still in a highly uncertain phase and here’s why.
What an Accepted Offer Actually Is
An accepted offer in NYC is simply the seller agreeing to your proposed price and terms verbally or in writing. That sounds serious, but it’s not legally binding on its own. In NYC real estate, offers don’t become enforceable until a formal purchase contract is signed by both the buyer and the seller’s attorney and the buyer delivers the deposit.
This stage is often confusing because many people think “accepted” means “under contract,” but those are two different milestones in NYC’s process.
No Legal Commitment Until Contracts Are Signed
Here’s the key: nothing is binding until the contract is fully executed. That means:
• The buyer can walk away at any time before signing the formal contract—even after an offer is accepted.
• The seller can also continue marketing the property, show it to other buyers, and even accept another offer before the contract is signed.
Because NYC law treats real estate contracts strictly under the statute of frauds (which requires written, signed agreements for real estate to be enforceable), a mere accepted offer whether verbal or in an email is not enough to bind the deal.
Why Sellers Keep Showing the Property After Acceptance
Even with an accepted offer, it is common in NYC for:
• Showings and open houses to continue
• Backup offers to be solicited
This happens because the seller isn’t legally obligated to you until there’s a signed contract. Showings stay active to lure stronger bids, especially in a competitive market.
Common Reasons Deals Fall Apart After an Accepted Offer
An accepted offer is just the start. During the period before contract signing, buyers and sellers navigate several hurdles including:
• Due Diligence and Attorney Review
Your attorney reviews building financials, bylaws, inspection reports, and other key documents. If something troubling shows up, negotiations can break down.
• Financing and Appraisal Issues
Buyers may fail to secure mortgage approval, encounter appraisal discrepancies, or change financial circumstances before contracts are signed, giving them legal room to withdraw. Financing issues often derail deals.
• Board Approval for Co-ops and Condos
In NYC, many properties require board approval. If a co-op board rejects a buyer, the deal evaporates.
• Better Offers Can Come In
Sellers may get last-minute higher bids or cash offers before the contract is signed and they are free to take them.
What It Means for Buyers
If you’re an eager buyer who just got an offer accepted, here’s what you need to know:
1. Keep Looking Until Contract Is Signed
Don’t assume the place is yours. Stay mentally prepared for the deal to fall apart.
2. Move Quickly With Attorneys
The faster your lawyer gets the contract reviewed and sent back signed, the sooner the deal becomes binding.
3. Communicate Openly With Your Agent
Ask your agent to keep you updated on any competing offers or continued showings.
4. Be Prepared for Inspection and Financing Contingencies
Your ability to satisfy contingencies affects whether the deal ultimately sticks.
What It Means for Sellers
If you’re selling, an accepted offer is still early in the process—meaning:
• You can accept another better offer before contract signing.
• You’re free to continue showings and solicit backups.
That flexibility is why sellers sometimes accept more than one offer or keep showings going until contracts are signed.
Final Thoughts
In New York City real estate, an accepted offer is just the beginning, not the conclusion. It’s a hopeful milestone but it’s not legally binding, and it doesn’t guarantee ownership. Whether you’re buying or selling, understanding this can save you from disappointment and arm you with realistic expectations as you navigate one of the most dynamic and complex real estate markets in the world.
If you’re thinking of making an offer on a property in NYC soon, it’s a good idea to work with experienced local agents and attorneys who understand the nuances of the process and who can guide you from “accepted offer” to “signed contract” with confidence.
