In real estate transactions, a counteroffer is a response to an initial offer that proposes different terms rather than accepting the original offer as presented. By making a counteroffer, the responding party—whether buyer or seller—rejects the original offer and replaces it with new or modified conditions, such as changes to the purchase price, closing date, contingencies, or repairs.
Once a counteroffer is made, the original offer is no longer valid, and the other party must choose to accept, reject, or make another counteroffer. This process may continue until both parties reach mutually agreeable terms or decide not to proceed. Counteroffers are a common part of real estate negotiations and help clarify expectations while working toward a finalized contract.
