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:
- 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.
- 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.
- 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.
- Buyer Counteroffer No. 2 (to seller): Buyer counters sales price to $407,500. They agree to the exclusion of the washer and dryer.
- 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 MakeMultiple 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.
FAQs
If the seller's counter-offer is too high, you can try to negotiate a lower price or walk away from the deal. If you really want the property, you may be able to get the seller to agree to a lower price by making a higher offer yourself. You can also try to get the seller to pay for some of the closing costs. …
What to do when you get a counter offer on a house? ›
If the seller's counter-offer is too high, you can try to negotiate a lower price or walk away from the deal. If you really want the property, you may be able to get the seller to agree to a lower price by making a higher offer yourself. You can also try to get the seller to pay for some of the closing costs. …
How to respond to a seller counter offer? ›
What's the best way to respond to multiple counteroffers from...
- Understand the seller's motivation.
- Review your own goals and limits.
- Communicate with your agent and lender.
- Consider all aspects of the counteroffer.
- Be flexible and creative.
- Know when to walk away.
- Here's what else to consider.
The time a buyer is granted to respond to an offer can vary, but the maximum amount of time is typically 24 hours. However, once a counteroffer is made, negotiations often escalate quickly back and forth to come to terms.
What happens when the seller counters a buyer's offer? ›
It's a bit like bargaining, or a conditional yes: The seller is essentially saying, “o*k, I'll sell you my house, but I want more money.” The buyer can agree to the new terms, walk away or make another counter-offer — say, meeting in the middle at $405,000.
Can a seller take back a counter offer? ›
Contractually, either party has the right to rescind an offer or counter offer while the other party has not yet responded.
What is a reasonable counter offer? ›
The rule of thumb when you negotiate salary with a counteroffer is between 10% and 20% of the offer amount. If you like the job and would accept the first offer rather than pass on the job, a counteroffer of 10% to 15% above the initial offer is not too aggressive.
How much do sellers usually come down on a house? ›
The amount you may want to reduce your home's asking price depends on many factors, including the median price in your area, what comparable homes nearby are selling for and the length of time the home has been on the market. According to a Zillow study, the average price cut is 2.9 percent of the list price.
Should you counter offer when selling a house? ›
In a competitive market, when you counteroffer you risk losing out on a deal. For instance, if it's a buyer's market, a seller should be cautious with counteroffers. A buyer's market is when there are plenty of houses for sale. And the homes for sale aren't selling that fast either.
What happens if buyer doesn't respond to counter offer? ›
As a buyer, you never have to respond to a seller's counter offer. Again, usually people do give responses, but you aren't required to do so, particularly if you lost interest in the home. If you let the expiration date and time pass, the counter offer is considered rejected.
You won't be able to retract your offer if: The seller has already accepted or declined your offer, or sent you a counteroffer.
Can a seller accept another offer while negotiating? ›
It is generally illegal and unethical for the seller to turn to another buyer at this stage. In earlier states, a seller in negotiations with a buyer may legally accept a higher offer from another buyer, but this practice is still considered unethical.
Do sellers usually wait to accept offers? ›
While receiving that first offer can be exciting for sellers, accepting the first bid is generally not the norm. Sellers often wait to see if more attractive offers come in, especially in competitive markets. Accepting too quickly could mean losing out on better terms or pricing.
What is the counter offer rule? ›
Primary tabs. A counteroffer functions as both a rejection of an offer to enter into a contract, as well as a new offer that materially changes the terms of the original offer. Because a counteroffer serves as a rejection, it completely voids the original offer.
Can a seller counter offer higher than the asking price? ›
In many cases, your agent will not know if there is another offer on a property. While a property is listed for an established price, there is no law or rule preventing a buyer from offering to pay more or less than the listed price, nor the seller from counter-offering.
What things could go wrong in a counter offer situation? ›
The risk in making a counter-offer is that if the buyer has changed his or her mind and rejects the counter-offer, you don't have the option to return to the original offer and accept it.
Should I accept a counter offer on a house? ›
If the counteroffer is within your purchase price and has favorable terms, you may choose to accept it and close the deal. Or you can still counter for a review of certain conditions you want changed. In case the counteroffer does not appeal to you in any way, you might be better off withdrawing from the purchase.
Is it worth accepting a counter offer? ›
80% of people leave within 6 months of accepting a counter offer – it's a stat for a reason! The trust with your current employer will be broken and your previously untarnished loyalty will be questioned. Most employers promise great things if you accept the counter offer, but rarely are they fulfilled.
What happens after a counter offer is accepted? ›
Neither party is obligated to settle until they agree on a contract, which occurs once the counteroffer is accepted. This is when a binding contract is formed. The contract is enforceable against either party.
Do you have to respond to a counter offer? ›
While negotiating for a new job or leaving your current one, it may be necessary for you to respond to a counteroffer. Regardless of your background, your response to a counteroffer can directly affect your long-term career plans.
