When a buyer or seller responds to an offer by changing any of the terms, that response is a counteroffer.
Instead of accepting the original offer, the responding party is proposing a different set of terms for the other side to consider.
What Is a Counteroffer?
A counteroffer is a response to an offer where one party makes changes to the terms.
Those changes can include:
- Price
- Closing date
- Possession timing
- Contingencies
- Or any other part of the agreement
Under the NWMLS forms, this is typically done using a counteroffer addendum that states the original purchase and sale agreement is accepted except for the specific changes listed.
What Happens to the Original Offer?
When a counteroffer is made, the original offer is no longer sitting there waiting to be accepted as written.
If someone later decides they would rather have the earlier terms, those terms need to be sent back to the other side again in a way that gives them a real chance to accept, reject, or counter.
That is why sending a counteroffer just to “see what happens” can create problems. Once you counter, you may be moving away from terms that could have worked.
What Happens After a Counteroffer Is Sent?
Once a counteroffer is sent, the other party has three options:
- Accept the counteroffer as written
- Reject the counteroffer
- Respond with another counteroffer
Each response continues the negotiation based on the most recent version that was sent.
Counteroffers and Timing
Each counteroffer includes its own expiration deadline.
On the NWMLS counteroffer form, that deadline is written into the document. If it is left blank, the counteroffer expires two days after delivery unless it is sooner withdrawn.
Because of that, timing becomes part of the negotiation. Each side has a limited window to respond before that version expires.
Common Mistakes with Counteroffers
A few patterns tend to cause confusion during negotiations:
Assuming the original offer is still available
Once a counteroffer has been sent, the original offer is no longer sitting there waiting to be signed. If both parties want to return to those terms, they need to intentionally move back to them.
Using a counteroffer just to test the waters
Sending a counter without a clear direction can push the negotiation away from terms that may have already been workable.
Focusing only on price
Price matters, but it is only one part of the agreement. Dates, timelines, and contingencies can all affect how a counteroffer is received.
Why This Matters in Real Transactions
Counteroffers are a normal part of real estate negotiations.
Understanding how they work helps buyers and sellers:
- Keep negotiations moving in a clear direction
- Avoid unnecessary confusion
- Make decisions that match their goals
A counteroffer is simply a revised set of terms. Each time one is made, the negotiation moves forward from that point.