A counteroffer in real estate is a formal response when a buyer or seller rejects the original offer’s terms but proposes new ones. It lets both parties negotiate price, contingencies or closing dates until they agree or end negotiations.
An acceptance means you agree to every term. A rejection means you decline outright. A counteroffer voids the original offer and presents modified terms that the other side can accept, reject or counter again.
Counteroffers allow you to secure better pricing, adjust deposit amounts or add protections—giving you leverage to walk away if terms don’t work.
By spelling out exact terms, you reduce the risk of misunderstandings that could lead to legal disputes or financial losses.
Real estate counteroffers come with strict response deadlines—often 24–72 hours—to keep momentum and avoid voiding the deal by default.
Either party can initiate a counteroffer. Sellers commonly respond to purchase offers, while buyers counter a seller’s listing terms.
Most agents use email or E-signature tools like DocuSign for speed and an audit trail. Fax remains an option in some markets.
“Time is of the essence” clauses enforce strict deadlines. Miss a deadline and the offer or counteroffer may automatically expire.
Once you make a counteroffer, the original offer is legally dead. The other party must accept the new terms to create a binding contract.
Acceptance of a counteroffer creates a binding contract—subject to contingencies and deadlines. Until then, either side can still walk away.
Contingencies (financing, inspection or appraisal) protect buyers. Earnest money shows good faith but can be at risk if deadlines aren’t met.
Specify your revised purchase price and any change to the deposit to reflect your commitment level.
Fine-tune your protective clauses—shorten or extend financing approval or inspection periods based on risk tolerance.
Define your preferred closing timeline, move-in dates and which fixtures or appliances stay with the home.
Offer strong earnest money, limit contingencies and be ready to move fast—while setting walk-away points in advance.
Ask for higher deposits, tighten contingency windows and consider offering to pay some closing costs in exchange for a better price.
Keep track of versions, stick to non-negotiables and know when to stop if price or terms drift beyond your comfort zone.
Agents prepare forms accurately, advise on market norms and negotiate professionally to protect your interests.
Consider an attorney for complex transactions—commercial deals, estate sales or when unique legal issues arise.
Watch for missed deadlines, unclear language and failure to include essential contingencies or deposit changes.
A counteroffer proposes new terms; a rejection ends negotiations; a notice simply acknowledges receipt without proposing changes.
The original offer is void and cannot be revived once you counter.
Deadlines vary but are typically 24–72 hours or as specified in the “time is of the essence” clause.
No—only when the other party accepts in writing under the agreed terms does it become binding.
Yes. Parties can exchange counteroffers until they agree or decide to walk away.
Jane offers $360,000 on a $400,000 home with a 60-day close and standard inspection and financing contingencies.
The seller counters at $390,000, shortens the inspection window to 10 days and requests a 45-day close.
Jane counters at $385,000, agrees to the 45-day close, but asks for a 14-day inspection period and $5,000 in closing cost help.
Both sides responded within 24 hours, met contingency deadlines and closed smoothly. Jane’s agent ensured all terms were clear and binding.
Counteroffers are the formal tool to negotiate after an initial offer, protecting both sides and driving toward agreement.
Define your non-negotiables, set clear deadlines, and prepare backup terms to maintain leverage.
Real estate deals can be complex. Partner with a qualified agent or attorney to customize your counteroffers and protect your interests.
