Counteroffer
Definition and meaning of Counteroffer in real estate.
A counteroffer is a response to an initial real estate offer that rejects the original terms and proposes new terms, such as a different purchase price or closing date.
In more detail
When a buyer submits a purchase offer, the seller can accept it, reject it outright, or issue a counteroffer with modified conditions. Once a counteroffer is made, the original offer is legally terminated and cannot be accepted unless the counteroffer is withdrawn. The negotiation process can involve multiple rounds of counteroffers as both parties try to reach mutually agreeable terms.
Buyers and sellers should act quickly during this stage, as a counteroffer typically includes an expiration deadline after which the offer becomes void.
Key facts
| Category | Buying & Selling |
|---|---|
| Legal status | Rejects the original offer and creates a new offer |
| Who initiates | Either the buyer or the seller |
| Critical timing | Usually contains an expiration timeframe of twenty-four to forty-eight hours |
A buyer offers three hundred thousand dollars for a home, and the seller issues a counteroffer asking for three hundred and ten thousand dollars and a faster closing timeline.
Frequently asked questions
Can a seller accept another offer while negotiating a counteroffer?
Yes, in most states, a seller is free to withdraw a pending counteroffer and accept a different offer from a new buyer at any point before the first buyer signs and delivers their acceptance.
What happens if a buyer rejects a seller's counteroffer?
If the buyer rejects the counteroffer, the negotiation ends, the contract is not formed, and the seller cannot go back and accept the buyer's original offer unless the buyer agrees to submit it again.
Related terms
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