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The Seller's Response
I will take the offer to the seller or seller's agent.  The seller will accept, reject or counter your offer with changes in some of the terms.  You can either sign or counter the offer at this point.

Negotiating Counter-offers

We will negotiate the often emotional, sometimes maddening details of offers and counter-offers.  These may include whether the buyer or seller pays points, who pays for the any repairs to the property, or the buyer wanting to keep the rec room pool table.  

Withdrawing and Offer
In most cases you can withdraw your offer up to the point when it is accepted.  If you do wish to cancel the offer, it's a good idea to consult with a real estate lawyer.  You don't want to lose your deposit, or be sued for damages perceived by the seller.

Coming to Terms
When you both agree to the terms, you should sign the document.  It then becomes a valid contract.  Only when an offer is accepted and signed by both parties is the contract binding.