Counteroffer

When a seller receives an offer from a buyer, they have three choices: accept it, reject it, or counter it. A counteroffer is when the seller proposes different terms, such as a higher price, a different closing date, or a change in which party pays for what.

Once a counteroffer is sent, the original offer is effectively void. The buyer then has the same three choices: accept, reject, or counter again. This back-and-forth continues until both parties agree on every term, creating a binding agreement, or until negotiations break down.

Buyers can also send counteroffers in response to seller counteroffers.

Counteroffers are how most real estate negotiations work. Few transactions close exactly at the original offer price without some back-and-forth. Understanding that counteroffers are a normal part of the process, not a personal rejection, helps both buyers and sellers stay focused on reaching a mutually acceptable agreement.

Each counteroffer creates an opportunity to close the gap. Each round also slightly extends the timeline and keeps the property on the market, which is something sellers should keep in mind when deciding how aggressively to counter.

A buyer offers $375,000 on a home listed at $395,000. The seller counters at $388,000. The buyer counters at $381,000 and requests that the seller pay $3,000 toward closing costs. The seller accepts $381,000 but declines the closing cost assistance. The buyer accepts. A binding agreement is formed.

"A counteroffer is an insult."

Real estate negotiation is just that: negotiation. A counteroffer is a professional response and a sign that both parties want to make a deal. Walking away from a reasonable counteroffer without further discussion often leaves money on the table or a missed opportunity.