Definition
A counteroffer is the seller's response when they reject your offer but propose different terms. This keeps negotiation alive—it's not a yes or no, but a new proposal.
Where you’ll meet it
How do I make an offer without overpaying?
See it in Buying my first home · Step 4About this term
Counteroffers are common in real estate negotiations. They allow both parties to express their ideal terms while keeping the deal in play. When a seller receives an offer, they may counteroffer on price, closing date, contingencies, or other terms. Each counteroffer resets the negotiation, and the original offer becomes invalid unless specifically revived.
Pro Tip
Set deadlines for counteroffers to keep negotiations moving and prevent staleness.
Example
When the buyer offered $400,000, the seller countered at $450,000 and requested a 20-day closing period.