A copy of a rejected offer or counter offer shall be provided to the buyer or seller within

Several scenarios may warrant a counter offer, and the countering process looks a little different for home buyers and sellers.

Seller

A seller can counter a buyer’s initial offer to change the purchase price or increase the earnest money deposit.

For example, let’s say you’re the seller and you list your home for $220,000. However, a buyer offers you $200,000 instead. Maybe you're still interested in signing a contract with that buyer for your home. If so, you make a counter offer of $210,000. At this point, the buyer may agree to that price, or the buyer may counter in response to your counter offer. To make your offer stronger, you may want to provide comps, or comparable homes in the area, to show why that price is reasonable.

Sellers can also make counter offers for other reasons, such as changing the closing date or contingency periods. Sellers will typically communicate the terms of the counter offer through their listing agent or real estate agent, and may also put an expiration date on the counter offer to speed along the home sale process.

Buyer

A buyer can also counter a seller’s counter offer, as we’ve mentioned in the previous example. There are no limits to the number of counters you can submit as a buyer.

Home buyers first create an offer that may be below the asking price when they want to negotiate the house price presented by the home seller. The home seller may counter with a higher price than the buyer’s original offer, but lower than the original asking price. If the buyer thinks the price is still high, they could counter it.

Let’s take a look at our previous example, only this time, you’re the buyer. A seller lists a home for $220,000, and you, the buyer, offer $200,000. If the seller comes back with a $210,000 counter offer, you could accept the deal or counter $205,000.

In another scenario, you might counter because a home inspection reveals issues with a property, such as a cracked foundation. You can ask the seller to take the price down to $200,000 if you find out that fixing the foundation issues will cost $20,000.

Buyers resend the counter offer terms to the home seller through their agent.

Home sellers make counteroffers when they’re dissatisfied with a buyer’s initial bid. Typically, a counteroffer states that the seller has accepted the buyer's offer subject to one or more changes. These changes could include the sales price, the removal of certain contingencies, the earnest money deposit, or the closing date, among other options.

Key Takeaways

• In some cases, a home seller may make a counteroffer if they are not happy with the buyer's offer.
• Counteroffers typically involve things like changing the price or increasing the size of the earnest money deposit.
• Just as a seller can submit a counteroffer to a buyer, a buyer can counter the seller's counter, which then becomes a counter-counteroffer.
• Sellers can accept, reject, or make a counteroffer to any bid they receive.

Why Has the Seller Countered?

Counteroffers typically involve things like changing the price the buyer will pay for the property or increasing the size of the earnest money deposit. The seller might also refuse to pay for certain reports or fees in a counteroffer. 

Changing the closing or possession date is another common reason for a counteroffer, as is excluding or adding personal property from the purchase. The seller might want to modify contingency time frames or have deposits released early. She might also want to add amendments.

Note

It's also possible that the initial offer itself is basically fine, but the seller wants to fix a buyer's or agent's mistake.

How Many Counteroffers Are Typical? 

Just as a seller can submit a counteroffer to a buyer, a buyer can counter the seller's counter, which then becomes a counter-counteroffer or Buyer Counteroffer No. 1. There is no limit to the number of counteroffers that can go back and forth.

Here's an example of five counters on a property that was listed at $415,000. The buyer had submitted a lowball offer of $400,000. This was the result:

1. Counteroffer No. 1 (from the seller to buyer): Seller makes a counteroffer, asking bumping the sales price up to $412,000. They also agree to include the washer and dryer without warranty.
2. Buyer Counteroffer No. 1 (to seller): Buyer counters sales price to $405,000. They agree to the inclusion of the washer and dryer without warranty.
3. Seller Counteroffer No. 2 (to the buyer): Seller counters sales price to $409,900. They exclude the washer and dryer from the sale, to make up for the lower sales price.
4. Buyer Counteroffer No. 2 (to seller): Buyer counters sales price to $407,500. They agree to the exclusion of the washer and dryer.
5. Seller Counteroffer No. 3 (to the buyer): Seller agrees to the sales price of $407,500. Refrigerator, washer, and dryer are all excluded from sale.

The buyer finally accepts the fifth counter, both parties sign the contract, and the sale proceeds.

How Is a Counteroffer Rejected?

Sellers can accept, reject, or make a counteroffer to any bid they receive.

If they do opt to reject an offer, there is often a spot near the bottom of the contract form where they can initial that the offer has been rejected. They also might choose to write "Rejected" across the face of the contract and then initial and date it. Sellers (or their agents) can also reject an offer orally.

Sellers also have the right not to respond at all. The listing agent can email the buyer's agent to communicate the fact that the seller will not respond because the offer is unacceptable, but sellers generally aren't required to formally reject an offer in writing.

Note

All offers and counteroffers include expiration dates, so be sure to make note of yours when deciding how to move forward.

How Is a Counteroffer Accepted?

The buyer can simply accept the counteroffer and deliver it back signed to the sellers and their agent. Time is of the essence, though, as every counteroffer includes an expiration date.

It’s also important to note that the seller can accept another offer while the buyer is deciding whether to move forward—another reason to act quickly when a counteroffer is on the table.

If the seller does get a more favorable offer while the buyer is deciding, the seller will typically withdraw the counteroffer, effectively removing the first buyer from the situation. 

Can Sellers Make Multiple Counteroffers With Multiple Buyers?

Depending on your state's laws, a seller may or may not be able to issue multiple counteroffers to more than one buyer. In some areas, sellers can counter more than one offer simultaneously. Each counteroffer can be different in terms and price, too. 

Generally, most real estate agents do not recommend that sellers make multiple counteroffers at once, as it could lead to two legally binding contracts simultaneously.

Frequently Asked Questions (FAQs)

How do I write a good counteroffer?

Writing a strong counteroffer can be a matter of having provable, current data. You'll want information at your fingertips regarding what the other party is asking for. Are their cost estimates accurate? Be able to provide documentation to back up your position.

What is the typical counteroffer expiration date?

The expiration date of a counteroffer can depend on the market at the time. Forty-eight hours is common, but this time frame can be cut in half in a hot market. It's best to respond as quickly as possible.

Can an offer be rejected by a counteroffer?

How do you counter offer a seller?

Which of the following must be reported to the Commission within 10 days?

Who must use the mandatory purchase agreement prescribed by the Louisiana Real Estate Commission?