A counter offer is what happens when the terms presented in a purchase agreement of a home are not acceptable to a party involved. Home buyers or home sellers can initiate a counter offer in the negotiation stages of a home sale. Since it is traditionally the buyers that write an offer to purchase to be presented to the sellers, the sellers are usually the first to make a counter offer back to the buyers. When a seller receives a purchase agreement or offer to purchase their home, the seller has 3 choices. The sellers can reject the offer to purchase, accept the offer as is, or counter offer. The counter offer changes or adjusts certain terms of the purchase agreement offer. It can include the sales price, the closing date, the amount of earnest money, the personal property that the buyers want included in the sale, or any other points within the purchase agreement offer.
When the buyer receives a counter offer from the sellers, they then have the same 3 choices. The buyers can accept the counter offer with the new terms of the purchase agreement, reject it and terminate any further negotiations, or counter offer back to the sellers.
The counter offer is a tool used to further negotiations in the hopes of the two sides coming to an agreement acceptible to both parties. Counter offers should be in writing and accompany the final purchase agreement throughout the sales process. Counter offers are a very common part of the process and more transactions than not have counter offers that have been negotiated to come to the final sales agreement.
