How do Verbal Offers Work in Real Estate?

How Verbal Offers Work in Real Estate

A verbal offer is when a buyer communicates their proposed purchase terms—price, contingencies, timing, and other conditions—orally instead of in writing. While verbal offers can move a negotiation forward, they have no binding legal force in real estate transactions.

1. Verbal Offers Are Not Legally Enforceable

In nearly all U.S. jurisdictions, including New York and California, real estate contracts must be in writing and signed to be legally enforceable (Statute of Frauds).
A seller can accept a verbal offer, but it means nothing until the offer is put in writing and executed.

2. Why Verbal Offers Still Happen

Agents often use verbal offers to:

Gauge interest or test pricing
Speed up negotiations before preparing paperwork
Avoid generating unnecessary formal contracts

It’s a way to feel out the deal before committing to the administrative work of a written offer.

3. Nothing Is Final Until It’s Written

Even if both sides say “we have a deal,” either party can walk away at any time before signing.
No earnest money is exchanged, no contractual obligations exist, and timelines don’t start until a written offer is accepted.

4. When a Verbal Offer Becomes Real

A verbal offer becomes meaningful only after:

The buyer puts the offer in writing (usually via a standard purchase agreement).
The seller signs and returns the written agreement.
Earnest money is deposited (in most states, though not legally required to form a contract).

5. Risks of Relying on Verbal Offers

Buyer risk: Seller could use your price to shop for a better offer.
Seller risk: Buyer may back out or change terms without consequence.
Agent risk: Miscommunication can occur without written terms.

6. Best Practice

Use verbal offers only to start negotiations.
Move to a written offer immediately once both sides are close on terms.